Central Banking – Responsibility without Power

So far in this series of articles, we have considered the immediate challenges in front of central banks, which in a nutshell revolve around the normalisation of monetary policy and the re‑establishment of a more orthodox relationship with markets.  In this final article we consider the longer term outlook, once…

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Central Banking – the great unwind

Central banks have always said that the unconventional monetary policy measures they have introduced in recent years are temporary, and they have been keen to restore policy to “normality” when the time is right. As that time approaches, the urgent question is what the great unwind will entail and how they will carry it out.

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The future of Central Banking

For much of the last 8 years, there has been an active debate on what central banks were doing to combat the threat of a second Great Recession. But as the period of extreme monetary policy draws to a close, the discussion is beginning to look forward, and to what the future policy framework for central banking should be.

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Negative central bank interest rates

For many years it was assumed that official interest rates, as set by central banks, could not go below zero. In recent years this rule – the “Zero Lower Bound” constraint, as it was known – has been decisively broken. How does monetary policy work in the brave new world of negative official interest rates, and what are the longer term implications?

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