Found 567 article(s) for author 'Monetary Policy'

The currency manipulation game is afoot – but that’s better than a trade war

The currency manipulation game is afoot – but that’s better than a trade war. Jeffrey Frankel, August 13, 2019, Opinion, “The trade war between the United States and China is heating up again, with U.S. President Donald Trump abruptly announcing plans to impose a 10-per-cent tariff on the US$300-billion worth of imports from China that he had so far left untouched. The Chinese authorities then allowed their currency, the renminbi, to fall below the symbolic threshold of seven yuan for every U.S. dollar. The Trump administration promptly responded by naming China a “currency manipulator” – the first time the U.S. had done that to any country in 25 years. Pundits declared a currency war, and investors immediately sent global stock markets lower.Link

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The Currency Manipulation Game

The Currency Manipulation Game. Jeffrey Frankel, August 9, 2019, Opinion, “The United States government’s assertion that the recent depreciation of the renminbi amounts to currency manipulation is not true. It would be more correct to say that the Chinese authorities gave in to market pressure – the immediate source of which was US President Donald Trump’s announcement of new tariffs on Chinese goods.Link

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Monetary policy spillovers, capital controls and exchange rate flexibility, and the financial channel of exchange rates

Monetary policy spillovers, capital controls and exchange rate flexibility, and the financial channel of exchange rates. Feng Zhu, July 2019, Paper, “We assess the empirical validity of the trilemma (or impossible trinity) in the 2000s for a large sample of advanced and emerging market economies. To do so, we estimate Taylor-rule type monetary policy reaction functions, relating the local policy rate to real-time forecasts of domestic fundamentals, global variables, as well as the base-country policy rate. In the regressions, we explore variations in the sensitivity of local to base-country policy rates across different degrees of exchange rate flexibility and capital controls. We find that the data are in general consistent with the predictions from the trilemma: Both exchange rate flexibility and capital controls reduce the sensitivity of local to base-country policy rates.Link

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Central Banks Should Forget About 2% Inflation

Central Banks Should Forget About 2% Inflation. Jeffrey Frankel, July 25, 2019, Opinion, “Despite years of monetary stimulus, inflation in the United States, Japan, and the eurozone continues to undershoot central banks’ 2% target. Rather than doubling down on their oft-missed goal, however, perhaps the Fed and other central banks should quietly stop pursuing it aggressively.Link

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Is Politics Getting to the Fed?

Is Politics Getting to the Fed? Robert Barro, July 23, 2019, Opinion, “In the early 1980s, the chairman of the US Federal Reserve, Paul Volcker, was able to choke off runaway inflation because he was afforded the autonomy necessary to implement steep interest-rate hikes. Today, the Fed is clearly under unprecedented political pressure, and it is starting to show.Link

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Christine Lagarde enters the European Central Bank at a perilous moment

Christine Lagarde enters the European Central Bank at a perilous moment. Lawrence Summers, July 9, 2019, Opinion, “The announcement last week that Christine Lagarde would be leaving her post as managing director of the International Monetary Fund to become president of the European Central Bank marks what may be the most important change in the leadership of the international financial system in decades. At a time when the United States is abdicating its systemic responsibilities and focusing only on narrow commercial interests, the role Lagarde is leaving and the one she is entering are of preeminent importance.Link

 

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Carmen Reinhart Discusses Global Economic Risks

Carmen Reinhart Discusses Global Economic Risks. Carmen Reinhart, June 28, 2019, Audio, “Carmen Reinhart, economist and the Minos A. Zombanakis Professor of the International Financial System at Harvard Kennedy School, discusses the panorama of risks facing the global economy. She speaks with Bloomberg Global Economics and Policy editor Kathleen Hayes on “Politics, Policy, Power and Law.”Link

 

 

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Be very skeptical about how much revenue Elizabeth Warren’s wealth tax could generate

Be very skeptical about how much revenue Elizabeth Warren’s wealth tax could generate. Lawrence Summers, June 28, 2019, Opinion, “Sen. Elizabeth Warren, D-Mass., has made her proposed 2 percent wealth tax on those worth more than $50 million a central part of her presidential campaign. Emmanuel Saez and Gabriel Zucman, two economists at the University of California at Berkeley, who helped developed the proposal, estimated it it would rake in $187 billion a year. In April, we published a piece in the Washington Post suggesting that this estimate was likely overly optimistic. This week, Saez and Zucman published a rejoinder.” Link

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Harriett Tubman On The $20 Bill

Harriett Tubman On The $20 Bill. Nancy Koehn, June 6, 2019, Audio, “On May 22. Treasury Secretary Steve Mnuchin announced that the $20 bill redesign set to replace President Andrew Jackson with Harriett Tubman would not be pursued during the Trump administration. Harvard Business School historian Nancy Koehn joined Boston Public Radio on Thursday to discuss why the change, initiated by the Obama administration, was delayed.Link

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