Monetary policy
Norges Bank deputy discusses institutional underpinnings of central bank activities
Jan Qvigstad highlights the importance of institutions in facilitating payments in an era when money lacks intrinsic value; chides Argentinian government for meddling with statistics
New central bank mandates raise operational challenges
Central bankers face a raft of policy and operational challenges as their institutions take on new mandates and expanded responsibilities. By Martina Horáková, Tristan Carlyle and Arvid Ahlund
Collateral could be useful tool at zero lower bound, says ECB paper
Working paper shows broader collateral eligibility makes funding conditions easier for banks; notes this could be useful for policy, but central banks should not forget sound risk management
NY Fed researchers study how, and how not, to co-ordinate policy
Staff report looks at best ways to co-ordinate monetary and macro-prudential policy, and highlights a number of potential pitfalls; model suggests macro-prudential policy should lead
RBA's Debelle backs Mundell-Fleming model
Reserve Bank of Australia assistant governor tells IMF annual conference that recent papers have failed to convince him to abandon traditional models of exchange rate effects
Fed reaction function shift helped support recovery, research finds
NY Fed research finds markets viewed ‘calendar’ forward guidance as a more dovish approach to policy, supported by comments from FOMC members; ECB and BoE both denied such a move in own guidance
Overburdened central banks may become ‘repoliticised’, says Orphanides
Former Central Bank of Cyprus governor warns overreliance on central banks may eventually ‘diminish and compromise’ their independence, in a paper published by the Boston Fed
US Senator vows to block Yellen nomination
Republican Rand Paul - son of long-time Fed critic Ron Paul - says he intends to fight confirmation of Janet Yellen as the next Fed chair unless monetary policy is subjected to Congressional scrutiny
SNB paper tests shock response on individual sectors
Researchers apply dynamic factor model to Swiss economy to examine impact of monetary policy, exchange rates and external demand on different sectors
IMF director delivers verdict on Abenomics one year on
Anoop Singh says Japanese prime minister’s stimulus plan has helped put Japan ‘at the centre of the global economic map’; tells Japan not to squander the opportunity
Canadian research finds drop in uncertainty following policy changes
Bank of Canada working paper presents evidence that uncertainty over interest rates in Canada fell after recent changes to monetary policy including forward guidance
OECD tells Brazilian government to stay quiet on interest rate policy
New report urges government to stop commenting on future trajectory of interest rates, and set fixed terms for MPC members ‘during which they cannot be dismissed'
Productivity still a puzzle for Bank of England MPC
Latest minutes show the monetary policy committee still does not really understand what is driving falling unemployment and rising productivity; inflation pressures seen softening slightly
BoE's Financial Policy Committee ‘most fashionable backstop in town'
External member of the Bank of England's Financial Policy Committee says its interventions will inevitably be ‘counter-popular', as it is increasingly used to backstop other people's policies
CNB's Lízal sets out case for forex intervention
The use of forex interventions to ease monetary conditions in an open economy is a rational choice at the zero lower bound, Czech National Bank board member tells finance conference
Blanchard, Cecchetti, Frenkel and Taylor debate limits of central bank independence
Illustrious panel at Bank of Mexico conference debates pros and cons of central bank independence; Cecchetti says full independence is ‘at odds’ with democracy
G-20 inflation measure paves way for co-ordinating policy
New statistic aims to fill ‘data gap' identified in wake of the global financial crisis; follows growing calls for globally coordinated monetary policy as countries fret over effects of QE
Bank of Italy paper tests monetary and fiscal defences against speculative attack
Researchers devise co-ordination game to assess interaction of monetary and fiscal policy when policy-makers attempt to resist a potential speculative attack
Haldane dismisses talk of monetary and macro-prudential tensions
Bank of England’s Andrew Haldane says it is a ‘virtue’ that different tools can be used to meet conflicting objectives; backs central banks for macro-prudential responsibilities
Riksbank paper evaluates inflation conservatism
Researchers consider how the timing of fiscal and monetary policy decision impacts the desirability of strict inflation targeting
Bank of Mongolia should brace for impact of runaway growth, says IMF
Article IV consultation concludes central bank has negotiated a number of hazards successfully, but says it must shore up its defences as the economy shows signs of overheating
IMF’s Blanchard flags ‘yet another transition’ as emerging markets struggle
IMF chief economist admits emerging market economies have performed worse than expected; calls for central banks to focus on credibility and dismisses US default as a ‘tail risk’ event
IMF paper says ECB can do more to fix broken transmission mechanism
Working paper identifies credit channel as a major malfunctioning component of the eurozone monetary transmission mechanism and suggests possibilities for fixing it - including asset purchases
Dollar lending in East Asia can override local monetary policy, says BIS' McCauley
Paper by Robert McCauley and Dong He of the HKMA argues the growth of credit in foreign currencies, especially the dollar, transmits global monetary easing to East Asia