Research
How the Taylor rule changed central banking for good
Kansas Fed paper shows that the rule had widespread influence and changed policymaking even when it was not adopted outright
Monetary misperceptions in a New Keynesian model
Centre for Economic Policy Research paper finds that the difference between primary and revised monetary figures captures misperceptions, which are key
Focus on fundamentals outperforms carry trades: IMF paper
International Monetary Fund paper finds that an investment strategy determined by analysis of the real effective exchange rate ultimately does better than one that relies on borrowing cheap and lending at higher rates
Bayesian reasoning in boom-bust cycles
Bank of Japan paper finds that investors cause inflations and deflations in asset prices when they base decisions on past experience of the market
Balance sheet policy and money market liquidity: SARB paper
South African Reserve Bank paper says balance sheet policy must be thought of in the same way that interest rates are regarded
Monetary-policy transmission in Mauritius
Paper examines mechanism over the past decade
A model for rate setting in Israel
Paper finds incorporating capital-market inflation expectations improves model
Crises dampen productivity: IMF paper
Rising costs negatively impact factor productivity and have implications for both monetary and fiscal policy, International Monetary Fund research finds
Inventories and the Phillips Curve
A Richmond Fed paper finds that introducing inventories into the New Keynesian model limits its ability to capture inflation dynamics
Spending and loose monetary policy cause inflation
CEPR looks for an explanation for UK inflation in the 1970s
Fifty years of monetary policy
Reserve Bank of Australia’s Glenn Stevens and economists Adam Cagliarini and Christopher Kent document the birth of inflation targeting and look to the lessons from fifty years of policymaking
Community banks remain crucial for US economy
Chicago Federal Reserve summarises its conference on the impact of the financial crisis on community banks
Ghana suited to inflation targeting: IMF paper
International Monetary Fund paper says the country does not suffer problems in credibility, which helps in the inflation targeting framework
Large shareholders take more risks
Bank of Canada analyses corporate risk taking
Middle East and North Africa’s trade below potential
International Monetary Fund looks at trade constraints in the region
Towards a euro monetary fund
Daniel Gros and Thomas Meyer team up on fix aimed at stopping another Greece
Chile on the pros and cons of connectivity
Central Bank of Chile looks at how shocks are transmitted across markets and banking systems
Modeling the demand for reserves
A new working paper from the Swiss National Bank estimates a demand curve for central bank reserves
Real-time macroeconomic monitoring
A new paper from the Philadelphia Fed sketches a framework for monitoring the
SWFs innocent of political bias
OECD looks at whether sovereign-wealth funds’ investments are politically motivated
US debt ratio drives international exchange rates: Bank of Canada
A Bank of Canada paper posits that the debt to GDP ratio in the US and commodity prices have great impact on bilateral exchange rates
CEE more vulnerable to exchange-rate shocks
National Bank of Hungary looks at the transmission of monetary policy in Central and Eastern Europe
Stability framework possible despite data challenge: Borio
Bank for International Settlements’ Claudio Borio says measurement of financial stability is the major challenge
Africa mostly sheltered from remittances drop
International Monetary Fund looks at the impact of the global economic crisis on African GDP via the remittance channel