A new museum in Paris is all about money

DW profiles the new money museum in Paris. They say money makes the world go around, and apparently, it also makes for a good museum: The “Cité de l’économie et de la monnaie” “(which translates as city of economy and money) is a new museum which opened this summer in Paris. Called Citéco for short, it’s appropriately located in the central building of the Banque de France. While the setting of the museum could hardly be more dignified­­ — a...

What the Wage Growth of Hourly Workers Is Telling Us

« Making Analysis of the Current Population Survey Easier | Main The Atlanta Fed's Wage Growth Tracker has shown an uptick during the past several months. The 12-month average reached 3.7 percent in June, up from 3.2 percent last year. But ...

Bank of Canada Announces Joint Recipients of its 2019 Law Enforcement Award of Excellence for Counterfeit Deterrence

The Bank of Canada is pleased to announce the recipients of its 2019 Law Enforcement Award of Excellence for Counterfeit Deterrence. Della Lewis of the RCMP Forensic Laboratory and Detective Jerry Sobchyshyn of the Edmonton Police Service designed a course for police studies at Grant MacEwan University that combines their policing and forensic expertise. The award recognises their contribution to counterfeit deterrence through these...

Bank failure management – the role of deposit insurance

FSI Papers  |  No 17  |  23 August 2019 by  Patrizia Baudino, Ryan Defina, José María Fernández Real, Kumudini Hajra and Ruth Walters PDF full text (417kb)  |  38 pages Managing bank failures is complex and costly. One way to expand the toolbox and fund its use is through the...

Assets and Liabilities of Domestically Licensed Banks (Banking Accounts) (End of June)

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Blanchard and Farmer on the Phillips Curve

In case you missed it, there's an interesting (and slightly wonkish) debate going on between Olivier Blanchard and Roger Farmer concerning the theoretical relevance of the Phillips curve. Roger fired the opening salvo by presenting a macroeconomic model he claims fits the data well and yet makes no use of the Phillips curve. Farmer, in Laplace-like fashion, declared "he had no use for that hypothesis." Blanchard predictably, and...

Account of the monetary policy meeting

Of the Governing Council of the European Central Bank, held in Frankfurt am Main on Wednesday and Thursday, 24-25 July 20191. Review of financial, economic and monetary developments and policy options Financial market developmentsMr Cœuré reviewed the financial market developments since the Governing Council’s previous monetary policy meeting on 5-6 June 2019. Sovereign bond yields had temporarily fallen to multi-year lows in the United...

Taking the time to measure money : A closer look at broad money in the U.K.

[embedded content] The FRED graph above, which tracks broad money in the U.K. over the past 172 years, makes it look like the Bank of England has let the money supply go completely out of control since 1970. But not so fast! Two important effects are at play here. The first is the power of compounding: Any statistic that increases at a constant rate will look like it is accelerating, especially if the sample period is long. That’s why FRED...

Money Supply 1970-01-01 00:00:00

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Chart of the WeekFintech, Fiber-optics, and Financial Inclusion

By IMFBlog Peoples’ connection to new technology is built on the backbone of electrical and fiber-optic cables running beneath our feet—and under oceans. In 2010, most economies that were not connected to the modern, cabled internet could be found in the Pacific. However, this is no longer the case, and by 2020 the region will be almost completely connected. Governments could harness technology to improve tax collection, government...

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 ...

Starbucks, monetary superpower

I recently spent some time on Twitter musing about the monetary wonders of Starbucks: Wow Starbucks, what a great gig. Starbucks has ~$1.6 billion in 'stored value card liabilities' i.e. the Starbucks Card. So ~6% of the firm's liabilities are comprised of coffee addicts paying 0% for the privilege of lending to their supplier. Source: https://t.co/nGH2arujYz pic.twitter.com/cGcSW3L4MM — JP Koning (@jp_koning) August 11, 2019 Starbucks has...

Online Estimation of DSGE Models

Michael Cai, Marco Del Negro, Edward Herbst, Ethan Matlin, Reca Sarfati, and Frank Schorfheide The estimation of dynamic stochastic general equilibrium (DSGE) models is a computationally demanding task. As these models change to address new challenges (such as household and firm heterogeneity, the lower bound on nominal interest rates, and occasionally binding financial constraints), they become even more complex and difficult to...

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RBNZ and IMF join efforts on the future of inflation targeting

Release date 23 August 2019 The Reserve Bank and the International Monetary Fund are hosting a conference in Wellington next week to discuss broad issues around monetary policy, the labour market, and the future of inflation targeting. Inflation Targeting: Prospects and Challenges has attracted delegates from around the world. It will be co-hosted by the Bank and the IMF’s Regional Office for Asia and the Pacific, and will be...

2019-08-23 – Press release – SNB public counter at Bundesplatz 1 to reopen

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Die Nationalbank riskiert Ärger mit Donald Trump

Donald Trump (Picture: Shutterstock) Die Deviseninterventionen der Schweizerischen Nationalbank sorgen für Spannungen. Die Schweiz läuft Gefahr, von den USA als Währungsmanipulatorin gebrandmarkt zu werden. (K)ein Grund zur Sorge? In den vergangenen Wochen hat die Schweizerische Nationalbank (SNB) wiederholt am Devisenmarkt interveniert, um den Franken davor zu bewahren, noch stärker gegen die wichtigsten Handelswährungen wie Euro und Dollar...

Is the Fed Doing Anything Right?

I'm not sure the Fed has many friends these days. Donald Trump is unhappy with it, and the financial media seems puzzled by what the Fed is doing. Can we make sense of the Fed's behavior, particularly its change in policy last week, or is the Fed simply incoherent?It might help to start with first principles. What would good central bank policy look like, were we ever to have the good fortune to observe such a thing? A central bank should have...

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...