Improving European economy: Draghi’s three Ps of mon policy, Summers’s three Ts of fiscal policy and Buti’s three Fs for structural reforms

Marco Buti of European Commission in this voxeu piece: The current slowdown and lacklustre medium-term growth prospects also indicate that the fiscal, monetary and structural policy mix needs to be changed. As Mario Draghi stated in his speech in Sintra (2019), monetary policy needs to remain patient, persistent and prudent. Fiscal policy needs to fulfil the three Ts as identified first by Larry Summers (2008): timely to be effective, targeted...

Do Higher Wages Mean Higher Standards of Living?

« Is There a Taylor Rule for All Seasons? | Main Editor's note: We have updated macroblog's location on our website, although archival posts will remain at their original location. Readers who use RSS should update their feed's URL to https://www.frbatlanta.org/rss/macroblog.aspx. ...

Monetary Policy Report Press Conference Opening Statement

Opening Statement Available as: PDF Good morning. Senior Deputy Governor Wilkins and I are glad to be here to answer your questions about today’s interest rate announcement and our Monetary Policy Report (MPR). Before turning to...

Cross-border resolution cooperation and information-sharing: an overview of home and host authority experience

FSI Papers  |  No 22  |  27 January 2020 by  Patrizia Baudino, Tracy Richardson and Ruth Walters PDF full text (702kb)  |  42 pages Executive Summary (118 KB, PDF) Cooperation and information-sharing between home and host authorities are critical...

Services Producer Price Index (Dec.)

Download PDF

A conversation with Eric Tymoigne on MMT vs SMT

There are a lot of moving parts to the MMT program. I want to focus on one of these parts today: the relation between monetary and fiscal policy. One thing I find appealing about MMT scholars is their attention to monetary history and institutional details. I've learned a lot from them in this regard. But as is often the case with details, one has to worry about whether they help shed light on a specific question of interest, or whether they...

Yves Mersch: Asset price inflation and monetary policy

Keynote speech by Yves Mersch, Member of the Executive Board of the ECB and Vice-Chair of the Supervisory Board of the ECB, at the celebration of INVESTAS’ 60th anniversaryLuxembourg, 27 January 2020IntroductionThe outlook for euro area economic activity and inflation at present warrants the highly accommodative monetary policy implemented by the ECB through our package of policy measures. Nonetheless, the Governing Council remains attentive...

Have you heard the news? News can affect markets : The effects of economic news on expectations of future financial performance

[embedded content] FRED’s all about data, which economists often use to conduct or test their research. So let’s look at some of that research… In a recent St. Louis Fed working paper, economists Maximiliano Dvorkin, Juan M. Sanchez, Horacio Sapriza, and Emircan Yurdagul study how the arrival of news affects emerging markets. They use a logic from a 2006 paper by Beaudry and Portier to identify news events—aka “shocks.” The idea is to compare...

Money Supply 2014-07-29 13:41:38

This blog will no longer be updated. Our thoughts on all things central banking, along with the more wonkish elements of economic policy, will appear on Alphaville and The World blog. Thank you for reading. You can keep in touch using our author alerts and twitter.

Tentative Stabilization, Sluggish Recovery?

By Gita Gopinath عربي, 中文, Español, Français, 日本語, Русский In the October World Economic Outlook, we described the global economy as in a synchronized slowdown, with escalating downside risks that could further derail growth. Since then, some risks have partially receded with the announcement of a US-China Phase I trade deal and lower likelihood of a no-deal Brexit. Monetary policy has continued to support growth and buoyant financial...

Weekly links May 10: why CCTs aren’t enforced before elections, when evidence isn’t used, digitalizing data, and more…

On Let’s Talk Development, results from tax compliance trials in Kosovo show some small increases from reminders, but also highlight the challenges of implementation, with many people not receiving their assigned treatment (e.g. half the letters not making it to recipients, less than one-quarter of emails opened). The CSAE coder’s corner has Meredith Paker sharing ...

What happens when a 96 bitcoin ransom payment ends up on Bitfinex?

"Hello, to get your data back you have to pay for the decryption tool, the price is $1,200,000... You have to make the payment in Bitcoins."This is a snippet from a recent court case concerning ransomware that just crossed my desk. Companies that fall victim to ransom attacks fear the publicity it might attract, so the details of these attacks are usually swept under the table. But in this case, the ransom payer—a British insurer...

How Does Tick Size Affect Treasury Market Quality?

Michael Fleming, Giang Nguyen, and Francisco Ruela The popularity of U.S. Treasury securities as a means of pricing other securities, managing interest rate risk, and storing value is, in part, due to the efficiency and liquidity of the U.S. Treasury market. Any structural changes that might affect these attributes of the market are therefore of interest to market participants and policymakers alike. In this post, we consider how a 2018...

Unattached images

Reserve Bank releases background papers and response to submissions on Capital Review

Release date 19 December 2019 The Reserve Bank of New Zealand has released background materials and papers to its final decisions on the Capital Review, along with its response to submissions on the fourth and final consultation paper, How much capital is enough? Stakeholder feedback and insights were important to shaping the Reserve Bank’s Capital Review, Deputy Governor Geoff Bascand says. “There was significant and...

2020-01-27 – Press release – Important monetary policy data for the week ending 24 January 2020

Download PDF

USD/CHF Price Analysis: Weak below 21-day EMA, two-week-old falling trendline`

USD/CHF confronts near-term key resistances. The previous week’s low can lure short-term sellers. 50-day EMA, 38.2% Fibonacci retracement confluence add to the resistance. USD/CHF struggles to extend the latest recovery while trading around 0.9700 during Monday’s Asian session. 21-day EMA and 23.6% Fibonacci retracement of the pair’s declines from November 2019 to the current month low seem to restrict the immediate upside. In addition to...

The FOMC: Where It’s Come From, and Where It’s Going

After three reductions of 25 basis points each in its fed funds rate target range since the middle of last year, the Fed seems to be on pause. What is the FOMC concerned about, and why, and what's in store for the rest of the year?What does the data look like? First, the labor market has become increasingly tight:The unemployment rate is lower than it's been for a very long time, and the job openings rate is higher than at any time since the...

Monetary policy delegation rebounded, and an odd trade-off

Back in the day, monetary policy economists and practitioners discussed the benefits of delgating monetary policy to an independent central bank. There were two kinds. The first was to remove an ‘average inflation bias’.  Think of a two period game.  In period 1, the government says to an all encompassing trade union ‘we are going to give you 2 per cent inflation’.  Unions bargain for 4 per cent nominal wage increases to cover productivity and...