Today we are fortunate to have a guest contribution written by Jamus Jerome Lim (World Bank), Sanket Mohapatra (World Bank), and Marc Stocker (World Bank). The findings, interpretations, and conclusions expressed in this article are entirely those of the authors. They do not necessarily represent the views of the World Bank, its Executive Directors, or the countries they represent.
Category Archives: international
Reserve Accumulation in the Wake of the Great Recession
More from For a Few Dollars More: Reserve Accumulation in Times of Crisis, by Matthieu Bussiere (Banque de France), Menzie Chinn (UW), Gong Cheng (Sciences Po), Noemie Lisack (European University Institute) (also NBER Working Paper No. 19791):
European monetary policy and the yield curve
From the Economist last week:
Since the financial crisis the European Central Bank (ECB) has ploughed a solitary course, reflecting its unique status as a monetary authority without a state. While other big central banks, notably America’s Federal Reserve, adopted quantitative easing– buying government bonds by creating money– to stimulate recovery, the ECB relied mainly on lowering interest rates and providing unlimited liquidity to banks on longer terms and against worse collateral. But as the Fed phases out its asset-buying programme in 2014, it may be the ECB’s turn to become unorthodox.
By one measure, the ECB may already be there.
Guest Contribution: “Financial Openness and Currency Crises”
Today we are fortunate to have a guest contribution written by Jon Frost and Ayako Saiki, econonomists at the De Nederlandsche Bank. The views expressed here are those of the authors and do not necessarily reflect the position of De Nederlandsche Bank.
Progress in Rebalancing
Manufacturing output is returning to pre-recession levels, exports are continuing to grow,and the trade balance is shrinking.
“For a Few Dollars More: Reserves and Growth in Times of Crises”
That’s the title of a paper coauthored by Matthieu Bussiere (Banque de France), Gong Cheng (Sciences Po), Noemie Lisack (European University Institute) and myself, in which we examine two key questions:
[F]irst, has the accumulation of reserves effectively protected countries during the 2008-09 financial crisis? And second, what explains the pattern of reserve accumulation observed during and after the crisis?
All quiet on the southern front
After a wild ride in 2011-2012, interest rates have settled down on European sovereign debt. For now.
Some Observations on the Efficacy of Monetary and Fiscal Policy
Japan edition
Inflation and output are up. So too is gross fixed capital investment. The yen is weaker, and the real quantity of net exports is higher.
American Debt, Chinese Anxiety, Elaborated
Or, how the Tea Party is working hard to sabotage the dollar’s role in global finance.
Measuring the Trilemma: Updated Indices
Jérémie Cohen-Setton has a nice review of the recent blog-literature regarding the trilemma on Bruegel: