Fiscal policy
BdF paper models tax evasion’s impact on sovereign default
Widespread tax evasion can undermine austerity plans imposed by donors, argue researchers
IMF to propose amendments to Pakistan central bank law
Changes will support efforts to reverse government debt trajectory, the fund says
RBI steps up liquidity support amid government credit push
Government launches credit guarantees for public sector banks that lend to non-bank financial firms and announces fresh recapitalisation
UK opposition sees greater role for BoE in fighting climate change
John McDonnell says BoE can do more to drive investment in productive, green sectors
Weidmann accepts OMT as ministers discuss Draghi succession
Bundesbank president withdraws his opposition to OMT programme unveiled by Mario Draghi in 2012
IMF formalises strategy on ‘social spending’
Lagarde says tackling inequality, exclusion and other social problems is key to rebuilding trust
Putting modern monetary theory to the test
Sayuri Shirai asks whether MMT might hold the solution to Japan’s stagnation
Martin Feldstein, 1939–2019
The US economist was hugely influential in shaping both policy and economic research
Global imbalances require ‘carefully calibrated’ policies – IMF
Report comes as G20 leaders warn about imbalances concentrated in advanced economies
Carney warns of ‘global liquidity trap’
BoE governor says model of “capital flows at risk” highlights important vulnerabilities, but reserves may still be too big
Climate change – Where can central banks contribute?
Climate change is becoming increasingly important to central banks thanks to its implications for financial stability. In a forum sponsored by Amundi, Central Banking convened a panel of experts to discuss the latest innovations, regulations and…
Trinidad and Tobago prime minister ridicules central bank’s migrant figures
Acting PM says he has “no idea” how central bank estimated cost of migrant crisis
Bank of Spain calls for reform of pensions system
Governor sees need for national consensus to secure sustainability of current system
Costa Rican central bank backs government’s external financing plans
Move would reduce pressure on domestic rates and boost economic growth, it says
Fiscal policy needed to tackle next crisis – Riksbank research
Low interest rates limits monetary policy influence, but opens the door to sustainable fiscal stimulus
Book notes: The third pillar, by Raghuram Rajan
Rajan sets out an ambitious – but deliberately non-radical – manifesto for reform at the local level
SBP hikes to 12.25% as inflationary risks grow
Government has been borrowing heavily from central bank and rupee has weakened
Weakened international co-operation could hinder crisis response – Bernanke
Christina Romer ‘loses sleep at night’ about internationals' readiness to fight a future crisis
Norway’s revised budget adds to pressure for tightening
Analysts think higher public spending could reinforce Norges Bank’s tightening cycle
Cooling economic activity in China paves way for more stimulus
Policy-makers may turn to fiscal stimulus rather than monetary easing
Swedish governor calls for comprehensive reforms to housing market
Higher house prices boost private debt, which now poses greatest financial risk, adds the governor
Poloz tells lawmakers carbon tax is likely inflationary
The politically controversial policy could have a mixed impact on growth, the governor says
A dangerous moment for the Reserve Bank of India
The RBI’s high-profile skirmishes with India’s populist government in 2018 threatened the central bank’s mission. Central bankers worldwide should take note
Eurozone needs central stabilisation fund to secure fiscal stability – ECB research
Unlike other monetary unions, the region’s federal budget plays a very limited role