central bankers

Central banks do not do miracles

Fernando Fernández (IEAF) | Perhaps the moment has arrived to abandon the temptation to arbitrate, to recover humility and discuss what should be the aim of monetary policy.


The position of the ECB on TLTROs III could be less generous than expected

The Sin Of Central Bankers

Francesco Saraceno | According to Wren-Lewis, central banks were not involved in the push towards fiscal consolidation, and their “only” sin was of not being vocal enough. I think he is too nice. At least in the Eurozone, the ECB was a key actor in pushing austerity.



What central bankers have forgotten

July 10, 2015 | By Benjamin Cole via Marcus Nunes’ HistorinhasAs a lot, central bankers are not entrepreneurs or real estate developers, and are very risk-averse, and are minutely concerned with the strict control of prices (as measured) as opposed to robust prosperity.




No Picture

ECB bound to act

MADRID | By JP Marín Arrese | Central bankers would be ill-advised to cave in to pressure from the markets. Yet, the ECB can hardly resist the urgent need to implement a fully-fledged QE programme involving sovereigns. Anything less could end-up sparking a period of vicious turmoil as Syriza seems poised to win the upcoming elections in Greece and the oil market continues to tumble into utter disarray. Such a grim outlook requires drastic action. Would it solve all the current problems? There are plenty of reasons to doubt it.



Do Aussie central bankers have a “good enough” solution?

Benjamin Cole via Historinhas The Reserve Bank of Australia (RBA) shoots for an “inflation band” of between 2 percent and 3 percent, and the Aussie economy (as recently illustrated here by Marcus Nunes) has been among the best-performing following the 2008 Great Recession. Could it be that simple? Should central banks merely shoot for a somewhat flexible and slightly higher inflation target? Worth noting is the People’s Bank of China has overseen much prosperity with a 4 percent inflation target.


Scatterbrained Central Bankers

SAO PAULO | By Marcus Nunes via Historinhas | Recently I showed this chart [see above] to press the point against the conventional wisdom that the purpose of the sequence of QEs was to lower long term rates.