Monetary Policy Archives - Lion and Palm Tree

Can’t we just print more money?

Book Review: Rupal Patel and Jack Meaning, ‘Can’t we just print more money – Economics in ten simple questions’, Cornerstone Press, London, May 2022.

The facade of the Bank of England. Edited from a photo by Samuel Regan-Asante on Unsplash

Introduction

The Bank of England is the first central bank to carry out the set of functions which are today associated with a central bank. It is not the oldest, an honour which goes to the Riksbank established in 1668. After its establishment in 1694 as an issuer of currency and as a government bank, the Bank of England started adding functions over the years. It was only in the second half of the 19^th century, when it became a lender of last resort, that the Bank of England came to be acknowledged and regarded as a central bank. Continue reading “Can’t we just print more money?”

Jerome Powell at Jackson Hole

Delivering the opening remarks at the Kansas City Fed’s annual Jackson Hole Symposium on 27 August 2020, Jerome Powell, Chair, Board of Governors, Federal Reserve System, discussed the first ever review of the FED’s monetary policy framework. Earlier in the day, the FED had released a revised Statement on Longer-Run Goals and Monetary Policy Strategy, which laid down its goals, framework for monetary policy, and would serve as the foundation for policy actions. Continue reading “Jerome Powell at Jackson Hole”

IMF’s Central Bank Transparency Code

When increased independence was being given to central banks across the world, especially in their conduct of monetary policy, and in countries implementing an inflation targeting framework, a key element was greater accountability of central banks, in which transparency and appropriate disclosures had a very important role. Transparency refers to the flow and accessibility of information from the central bank to its stakeholders and the public. They rely on that information to inform their judgment of the performance of the central bank and compliance with the central bank’s mandate. Transparency is also a key plank in the central bank’s broader governance and accountability framework. Continue reading “IMF’s Central Bank Transparency Code”

Covid-19: An induced coma for the global economy

Speaking at the UBS High-level Discussion on the Economic and Monetary Policy Outlook, held in Zurich on 27 May 2020, Agustín Carstens, General Manager, Bank for International Settlements, discussed the economic impact of Covid-19, and policy response of advanced economies’ central banks. Continue reading “Covid-19: An induced coma for the global economy”

Philip Lowe on Australia’s response to the pandemic

Philip Lowe, Governor of Reserve Bank of Australia since 2016, in his speech on 24 April 2020, gave an update on the economic and financial condition in Australia in the context of the Covid-19 pandemic. Continue reading “Philip Lowe on Australia’s response to the pandemic”

Stephen S. Poloz on the “Teachable moments” from the pandemic

Stephen S. Poloz, Governor of Bank of Canada since 2013, stated in his speech on 4 May 2020 that the pandemic offers a “teachable moment”. He lists the following as lessons for central banking from this teachable moment: Continue reading “Stephen S. Poloz on the “Teachable moments” from the pandemic”