Redesigning the ECB with regional rather than national central banks

Michael Burda, 15 July 2013

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The monetary union was always a grand gamble. It established the ECB for an immense region that itself was not a state -- a trans-European institution with governmental duties that does not represent any government in particular.

Topics: EU institutions, Macroeconomic policy
Tags: Central Banks, ECB, monetary union

Integrating monetary policy and macroprudential regulation

Otaviano Canuto, Matheus Cavallari, 21 May 2013

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If the global crisis – and the events that led up to it – have taught us anything, it is that there should be ‘no complacency with asset price booms’. We know first-hand the dire consequences of significant and widespread bubbles, so clearly monetary policymakers can no longer passively observe the evolution of asset prices.

Topics: Global crisis, Monetary policy
Tags: Central Banks

Misplaced concerns about central-bank independence

Marco Annunziata, 12 February 2013

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Concerns are rising that central-bank independence is at risk, already curtailed by governments eager to control all other levers of growth. The Japanese government’s none-too-subtle strong-arming of the Bank of Japan is one of the most blatant examples (e.g. King 2013).

But the current debate on the risks to central-bank independence misses the point.

Topics: Institutions and economics, Monetary policy
Tags: Central Banks, ECB, Fed, Federal Reserve, fiscal policy, independence

Bank capital requirements: Are they costly?

David Miles, 17 January 2013

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There exists a widespread view that having banks use more equity capital (and relatively less debt) to finance the assets they hold creates substantial costs, costs that may be so great as to make more capital infeasible. I believe that these costs are very substantially exaggerated.

Topics: Financial markets
Tags: banking, Central Banks, debt capital, equity capital

To cut or not to cut, that is the (central banks') question: In search of neutral interest rates in Latin America

Nicolas Magud, Evridiki Tsounta, 16 January 2013

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An increasing number of Latin American countries have been strengthening their monetary policy frameworks, using the monetary policy rate as their main instrument since the late 1990s.

Topics: Institutions and economics, Macroeconomic policy, Microeconomic regulation
Tags: Central Banks, Information, interest rates

True independence for the ECB: Triggering power - no more, no less

Markus K Brunnermeier, Hans Gersbach, 20 December 2012

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Governments are hesitating over how to resolve the financial distress of banks, leaving fragile banking structures in place. This problem is particularly pressing in the Eurozone; governments expect the ECB to continue providing cheap funding, undermining the bank’s independence.

Topics: EU institutions, Europe's nations and regions
Tags: banking regulation, banking union, Central Banks, ECB, Eurozone crisis

Monetary policy in Latin America: Where are we going?

Christian Daude, 10 December 2012

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Inflation targeting has served countries in Latin America well . They have achieved macroeconomic stability by reducing inflation and the pass-through of external shocks such as oil price and exchange rate fluctuations (cf. Mishkin and Schmidt-Hebbel 2007).

Topics: Macroeconomic policy, Monetary policy
Tags: Brazil, Central Banks, Chile, Colombia, foreign exchange, inflation targeting, Latin America, Mexico, Peru

Using changes in auction maturity sectors to help identify the impact of QE on gilt yields

Ryan Banerjee, Sebastiano Daros, David Latto, Nick McLaren, 20 August 2012

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The policy decisions of several of the world’s largest central banks turn on a tricky empirical judgement – the effect of quantitative easing purchases on government bond yields. In the UK, the empirics have got much harder.

Topics: Monetary policy
Tags: Central Banks, quantitative easing

The case for ‘deficit monetisation’ and greater cooperation between central banks and ministries of finance

Richard Wood, 18 August 2012

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The Financial Times editorial (12 April 2012, under the heading ‘Waiting for Growth’) pointed to the widespread disappointment with policies of ‘quantitative easing’ (QE). These policies have now been applied in the US, Japan, the UK, and in the Eurozone without substantial evidentiary success on an ongoing basis.

Topics: Monetary policy
Tags: Central Banks, monetisation of budget deficits, quantitative easing

The (other) deleveraging: What economists need to know about the modern money creation process

Manmohan Singh, Peter Stella, 2 July 2012

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One of the financial system’s chief roles is to provide credit for worthy investments. Some very deep changes are happening to this system – changes that surprisingly few people are aware of.

Topics: Macroeconomic policy
Tags: Central Banks, monetary policy, money multiplier, Pledged collateral, private money creation, re-pledging

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