Monetary window-dressing
The best way for a central bank to achieve both low inflation and low unemployment is to make it pursue price stability alone. [...]
Monetary policy
Monetary policy needs public scrutiny
Central banks have a crucial role to fulfil in our economies. This role thus deserves public scrutiny and debate. Given the RBNZ’s independence, external commentary on its actions is the most effective check on its operations. [...]
The next crisis, sooner or later
Have the responses to the Global Financial Crisis just shifted us towards another bubble economy? [...]
Monetary policy isn’t a panacea
In the wake of the financial crisis power shifted from politicians to the ECB, now it’s time for elected governments to address the underlying causes of Europe’s malaise. [...]
An ECB dead end
If you are a born optimist, you may have concluded by now that the euro crisis is over. Indeed, we have not heard much about it lately. No bailouts, no bank runs, no Greek elections. It almost feels like financial stability. If you are a realist, however, you would be looking at two figures and know that we are right in the middle of the euro crisis. [...]
Parity party an opportunity for reflection
Is parity between the Kiwi and the Aussie dollars a reason to celebrate or a to be worried? And shouldn't we just take the opportunity to reflect on how we got there? [...]
Bernanke’s misguided fix for Germany
Ben Bernanke's analysis of Germany's exports problem is correct but it yields the wrong conclusions. [...]
Germany’s bubble economy is on borrowed time
The real problems for Germany will begin once the ECB follows the Fed’s example and tapers its monetary stimulus. But thanks to the eurozone periphery, it may take years until the ECB feels ready to take this step. In the meantime, Germany may enjoy its bubble economy while it lasts. [...]
Respecting the Reserve Bank’s independence
Speculating and commenting on central banks’ next moves is something for foreign exchange traders, not Prime Ministers [...]
Who’s afraid of eurozone deflation?
By demonising ‘deflation’ (even if it is really just price stability by another name), the ECB underlines its commitment to helping the eurozone’s debtors, whether they are financial institutions or governments. The response to this so-called deflation threat will be to maintain interest rates negative or even embark on a program of quantitative easing, which may be announced over the coming days. In effect, however, such policies are just bailout programs by stealth.
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