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Home / Tag Archives: Central Banks / Monetary Policy

Tag Archives: Central Banks / Monetary Policy

Will financial conditions be increasingly influenced by the news in Shanghai and Shenzhen alongside New York and London?

Nicole Adams, David Jacobs, Stephen Kenny, Serena Russell and Maxwell Sutton in this Reserve Bank of Australia Bulletin article reviews the developments in Chinese financial system. They point how the Chinese financial system is gradually becoming larger and more open to foreign competition. In near future, news in Shanghai and  Shenzen will influence global financial markets: Risks in China’s financial system remain elevated despite its economy’s strong recovery from...

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How the power of economic ideas led to Taiwan’s export-led growth

Douglas Irwin highlights the importance of economic ideas in pushing growth in Taiwan. Irwin starts with Krugman pointing to the role of ideas in pushing economic growth: In a recent New York Times piece, Paul Krugman discussed two drivers of the “hyperglobalization” era that began in the mid-1980s and lasted until the global financial crisis of 2008. These drivers are improved transportation technology (shipping containers and airfreight) and lower trade barriers (tariff reductions) in...

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50 years of Monetary Authority of Singapore

The list of anniversaries in 2021 keeps growing. 100th birthday of Dr Kurien and 75 years of Amul, 100th birthday of PV Narasimha Rao, 100 years of South African Reserve Bank, 100 years of Tamilnad Mercantile Bank 50 years of Bangaldesh, 30 years of India’s reforms, 25 years of IDRBT, 5 years of Indian Bankruptcy Code, There must be many more which I am missing. In 2018, there were several anniversaries as well. 2021 marks the 50 years of Monetary Authority of Singapore as well Prior to...

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India’s UPI and Singapore’s PayNow to Link in 2022

As central banks and other experts think/work on using CBDCs for crossborder transfers (this too), there could be other interesting ways. India and Singapore have decided to link their local digital payments for crossborder transfers. From RBI: The Reserve Bank of India (RBI) and the Monetary Authority of Singapore (MAS) announce a project to link their respective fast payment systems viz. Unified Payments Interface (UPI) and PayNow. The linkage is targeted for operationalisation by July...

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Monetary and fiscal complementarity in the US during the Covid-19 pandemic

Jagjit S. Chadha, Luisa Corrado, Jack Meaning and Tobias Schuler in this ECB paper analyse the monetary and fiscal policy during the In response to the coronavirus (Covid-19) pandemic, there has been a complementary approach to monetary and fiscal policy in the United States with the Federal Reserve System purchasing extraordinary quantities of securities and the government running a deficit of some 17% of projected GDP. The Federal Reserve pushed the discount rate close to zero and...

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How Raghuram Rajan, Urjit Patel differ on greening of central bank policies

My new article on Moneycontrol. The two former RBI Governors recently expressed their views on whether and how central banks should address climate change.  The piece sums their views and suggests way forward for central banks. This entry was posted on September 14, 2021 at 9:39 am and is filed under Academic research & research papers, Central Banks / Monetary Policy, Economics - macro, micro etc, Financial Markets/ Finance, Indian Economy/Financial...

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Central bank digital currency: the future starts today

Benoît Cœuré, Head of the BIS Innovation Hub in this speech: Across the world, central banks are coming together to focus on their common mission. Charged with stability, they will not rush. They want to move fast, but not to break things. Consultations with payment systems and providers, banks, the public and a broad range of stakeholders have begun in some countries. To build a CBDC for the public, a central bank needs to understand what they need, and work closely with other...

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A Hitchhiker’s Guide to Empirical Macro Models

Fabio Canova  and Filippo Ferroni in this Chicago Fed paper (136 pages!): This paper describes a package which uses MATLAB functions and routines to estimate VARs, local projections and other models with classical or Bayesian methods. The toolbox allows a researcher to conduct inference under various prior assumptions on the parameters, to produce point and density forecasts, to measure spillovers and to trace out the causal effect of shocks using a number of identification...

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Debt Dynamics in Emerging and Developing Economies: Is R-G a Red Herring?

Marialuz Moreno Badia, Juliana Gamboa-Arbelaez and Yuan Xiang in this IMF paper: In the wake of the COVID-19 pandemic, debt levels in emerging and developing economies have surged raising concerns about fiscal sustainability. Historically, negative interest-growth differentials in these countries have played a debt-stabilizing role. But is this enough to prevent countries from falling into debt distress? Drawing from a sample of 150 emerging and developing economies going back to the...

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Central banking, fast and slow: Central banking should be like Kahneman’s System II thinking

Ms Fundi Tshazibana, Deputy Governor for the South African Reserve Bank in this speech given in July 2021 quotes Daniel Kahnemann’s Thinking Fast and Slow. The title borrows from Daniel Kahneman’s well-known book, Thinking, fast and slow. On 6 July 2020, Project Syndicate published an op-ed by Mohammed El-Erian also titled ‘Central banking, fast and slow’. The title of this speech was finalised in June and published in the Nelson Mandela Bay Leadership Summit programme before this...

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