Fiscal policy
Eurozone fiscal deficit declines in Q1
Lower imbalance due to lower spending; revenue remained stable as a share of GDP
ECB likely to shy away from AIT in new monetary policy framework
Symmetric 2% target is expected outcome; governing council members struggle to agree on forward guidance
Suriname central bank signs deal to end monetary financing
Accord with government will help debt-laden country secure IMF loan
IMF agrees with Fed on ‘transitory’ inflation
Georgieva says recent inflation spike likely to pass; supports Biden’s fiscal plans
BoE paper models impact of ‘active’ fiscal policy
Active fiscal policy complicates monetary policy but can generate higher welfare, author says
Kuwait dispute leaves SWF without managing director or full board
Fiscal battle between monarch and parliament keeps top positions at sovereign wealth fund vacant
BIS annual report: ‘disaster averted’ but world ‘not out of the woods’
Report weighs up three scenarios for “pandexit”, none of them without drawbacks
ECB’s Panetta: fiscal-monetary co-ordination no danger to independence
Executive board member thinks interaction can be fruitful in attaining inflation goal
Mexican central bank raises rates for first time since 2018
Governing board votes three to two for hike, citing above-target inflation and upside risks
Dallas Fed: credit conditions improved for most in 2020
Study of Texas finds communities with more immigrants saw fewer benefits
Charles Goodhart on inflation targets, financial stability and the role of money
The LSE professor says inflation targets should have been 0%, the Fed’s move to AIT is a mistake, independence is under threat from inflation, big balance sheets support liquidity, AI can help supervisors and climate stress tests are unconvincing
‘Fiscal distress’ can reverse exchange rate dynamics – BIS paper
Authors emphasise “contingent nature” of exchange rate response to shocks
EU blocks 10 major banks from bond issuances
Commission alleges lenders need to clarify previous antitrust breaches
Mexican president names finance minister to head central bank
López Obrador nominates long-term ally after frequent clashes with current governor
Ailing Suriname floats its currency
Defaulting country holds debt talks as inflation and corruption take toll
Sarb paper questions assumption that government debt is low risk
Banks may need to reduce exposure to sovereign debt instruments as fiscal risk rises
Yellen: ‘slightly higher interest rate’ would be fine
Treasury secretary says US should push forward with spending plans
DRC promises central bank reforms
Kinshasa makes pledges to IMF in return for $1.5 billion three-year loan
RBI pays out second-largest dividend
Indian central bank orders $13.6 billion payment to government
Fed’s Harker warns US higher education ‘is in peril’
Philadelphia Fed president calls for reforms, as colleges face up to $115 billion in deficits
The new era of money supply and its impact on policy
The empirical relationship between money and inflation has changed, writes Manmohan Singh, with Apoorv Bhargava and Peter Stella. To understand current policy challenges, we must first understand money creation
Bank of Mexico holds rates despite above-target inflation
Central bank keeps policy rate at 4% as inflation rose year on year by 6.1% in April
IMF urges Mauritius to reform central bank
Bank of Mauritius made loan to government in 2020 and funds investment body with reserves
Riksbank maintains stimulus as it revises up growth forecasts
Swedish central bank says a return to negative rates is possible if inflation target is imperilled