Fiscal policy
Bolivian ex-governor warns pension law poses bank risk
Current governor has stayed silent on risks posed by measure, former governor Morales says
Too great expectations from the ECB’s strategy review
The review process represents operational best practice, but will fail to unify the Governing Council
Chilean governor opposes new pension withdrawals
Congress considering authorising fourth drawdown as stimulus measure
Is the ECB’s strategy review enough?
The reformed framework may allow greater stimulus to tackle weak inflation expectations, but the Governing Council is already divided on what to do next
Bank of Thailand calls for additional $30 billion borrowing
Debt totalled 54% of GDP by June, putting pressure on the 60% ceiling
Belize governor resigns after 19 weeks
Central bank offers few details, but country has suffered sharp economic blows
Julio Velarde set to accept new term as Peruvian governor
New left-wing president said in June he intended to re-appoint long-serving governor
Global economy faces ‘decisive moment’ – IMF’s Gaspar and Gopinath
Policy-makers have “window of opportunity” to help those falling behind in Covid-19 recovery
Brazil accelerates tightening cycle with 100bp rate hike
Central bank takes key policy rate to 5.25%, as inflation increased by 8.4% in June
Iran’s Hemmati warns against monetary financing
Former governor mounts criticism of departing President Rouhani
BIS paper warns against ‘timid’ QE and ‘debt-averse’ fiscal policy
Policy mistakes at zero lower bound can worsen economic problems, authors say
Eurozone fiscal deficit declines in Q1
Lower imbalance due to lower spending; revenue remained stable as a share of GDP
ECB likely to shy away from AIT in new monetary policy framework
Symmetric 2% target is expected outcome; governing council members struggle to agree on forward guidance
Suriname central bank signs deal to end monetary financing
Accord with government will help debt-laden country secure IMF loan
IMF agrees with Fed on ‘transitory’ inflation
Georgieva says recent inflation spike likely to pass; supports Biden’s fiscal plans
BoE paper models impact of ‘active’ fiscal policy
Active fiscal policy complicates monetary policy but can generate higher welfare, author says
Kuwait dispute leaves SWF without managing director or full board
Fiscal battle between monarch and parliament keeps top positions at sovereign wealth fund vacant
BIS annual report: ‘disaster averted’ but world ‘not out of the woods’
Report weighs up three scenarios for “pandexit”, none of them without drawbacks
ECB’s Panetta: fiscal-monetary co-ordination no danger to independence
Executive board member thinks interaction can be fruitful in attaining inflation goal
Mexican central bank raises rates for first time since 2018
Governing board votes three to two for hike, citing above-target inflation and upside risks
Dallas Fed: credit conditions improved for most in 2020
Study of Texas finds communities with more immigrants saw fewer benefits
Charles Goodhart on inflation targets, financial stability and the role of money
The LSE professor says inflation targets should have been 0%, the Fed’s move to AIT is a mistake, independence is under threat from inflation, big balance sheets support liquidity, AI can help supervisors and climate stress tests are unconvincing
‘Fiscal distress’ can reverse exchange rate dynamics – BIS paper
Authors emphasise “contingent nature” of exchange rate response to shocks
EU blocks 10 major banks from bond issuances
Commission alleges lenders need to clarify previous antitrust breaches