Category: Monetary Policy
On forward guidance
Does central bank communication create more confusion? Recent research on the forward guidance puzzle.
On Central Bank Independence
How Central Bank independence has changed since the financial crisis? Is there a case for limiting Central Bank autonomy?
Do interest rates matter?
Are interest rates the main channel through which monetary policy is transmitted? A look at old and new research.
Monetary policy and the financial sector
How low can interest rates go before hurting the economy? Two new working papers on financial intermediaries and their impact on the transmission of monetary policy.
Rethinking the inflation target
US economists write to Janet Yellen recommending an increase of the Fed’s inflation target. Not everyone is on board though!
The Fed’s balance sheet normalization
How will the Fed shrink its balance sheet and what should its ultimate size be? Federal Reserve Board staff, Narayana Kocherlakota, Ben Bernanke and Christopher Sims answer these questions.
Cecchetti and Schoenholtz on what has become of Bitcoin. Larry White on the new dollar-pegged cryptocurrencies and Bordo and Levin on central bank issued digital currency.