Zero lower bound
Crypto assets may force central banks into policy synchronisation
Paper examines the impact a global crypto asset would have on the “impossible trinity”
Central banks must use “unconstrained” negative rates, Rogoff tells ECB
Policy-makers must ensure cash depreciates against electronic money, or face failure, Rogoff says
Researchers use option prices to gauge ZLB risk – San Fran Fed
Chance of rates hitting zero lower bound by the end of next year is 16%, researchers find
Orr: RBNZ ‘thinking hard’ about unconventional policy
Governor says tools not likely to be needed, but “we would be remiss not to be prepared”
Inflation targets may have to rise, new study finds
Optimal policy would see targets rise by roughly the same amount as the decline in neutral rates, researchers say
RBA open to unconventional policy measures – deputy governor Debelle
Quantitative easing may be on the cards if central bank cuts rates to 0.5%
Central banks face loss of independence – Central Banking survey
A new survey of Central Banking’s Editorial Advisory Board points to central banks facing existential challenges with little change in their frameworks or toolkits
Overcoming deflation: Japan’s experience and challenges ahead
Bank of Japan governor Haruhiko Kuroda explains how Japan’s long battle against deflation may offer insights for the future conduct of monetary policy at other central banks
Australia could reach zero lower bound, says Lowe
Governor says RBA is open to unconventional monetary policy
New York Fed forced to clarify Williams’ speech
Spokeswoman steps in after Williams appears to hint at more aggressive policy cut
CBDCs could protect citizens from e-currency abuse, official says
Citizens in cashless societies could be vulnerable to monopoly power, says Sveriges Riksbank official
Risk of hitting ZLB in next three years is low – San Francisco Fed paper
ZLB should not be a concern for monetary policy at this stage, researcher says
Consensus over Fed inflation target shifted during Great Recession – San Fran Fed
Up until the 2008 crisis, most FOMC participants preferred a 1.5% target, researchers find
Book notes: Floored!, by George Selgin
Michael Reddell remains unconvinced the Fed’s introduction of the IOR prolonged the recession, but credits Selgin’s argument the IOR policy made the central bank a more powerful credit lender
Researchers estimate two alternatives to DSGE model at ZLB
Dallas Fed paper finds piecewise linear version of the model is an “excellent substitute”
Monetary policy frameworks need modifying, former Fed governor says
Lower r* requires two key modifications to flexible inflation-targeting regimes, Frederic Mishkin says
NY Fed’s Williams advocates change to inflation-targeting framework
But Don Kohn prefers to keep status quo with some supplementary policies
Riksbank’s Jansson says he favours higher inflation target
Swedish deputy governor reflects on monetary policy options to deal with next crisis
Janet Yellen backs form of price-level targeting for Fed
Former chair says current system risks downward spiral of long-term rates
Bank of Canada to weigh up alternatives to inflation targeting
Central bank will hold “full horse race” between nominal GDP targeting and other alternatives, Wilkins says
US forward guidance had limited effectiveness, Fed paper finds
Households and firms took until 2012 to seriously consider new regime, researchers say
Lower bound not a big constraint for the Fed – paper
Risks of Fed being constrained in the future are “greatly overstated”, author says
Yellen says Fed should begin forward guidance now
Action now could have equivalent impact to negative rates, says former Fed chair
‘Stochastic lower bound’ impacts inflation – BoE paper
Assuming the lower bound is fixed might be unrealistic, authors say