LONDON (Reuters Breakingviews) - New Zealand led the way in central banking in the past. Now, the country that first formally asked independent monetary policymakers to target inflation is offering a lesson in the problems of overburdening rate setters.
LONDON (Reuters Breakingviews) - European Central Bank boss Christine Lagarde can learn from her peers’ mistakes. She’s partway through a strategy review, including basics such as what its inflation target should be and which price measure to track. Federal Reserve Chair Jerome Powell, who came up with a new mission statement after conducting a similar exercise, offers a useful lesson on one pitfall to avoid.
LONDON (Reuters Breakingviews) - Uncle Sam’s allies across the globe have high hopes for President-elect Joe Biden. German Economy Minister Peter Altmaier spoke for many when he said on Monday that Biden’s victory augured a return to stronger multilateralism. The World Trade Organization will offer an early chance for Biden to show that’s true. Even changes in form will produce changes in substance.
LONDON (Reuters Breakingviews) - UK finance minister Rishi Sunak couldn’t ask for a better friend than Andrew Bailey. The Bank of England boss said on Thursday he would buy an extra 150 billion pounds of government bonds to help an economy that will take a new hit from the lockdown imposed in England this week. These purchases will allow Sunak to keep spending freely without worrying about whether borrowing costs might rise. But the central bank’s buying spree is at best a sticking plaster.
LONDON (Reuters Breakingviews) - The regional head of the International Monetary Fund, Abebe Aemro Selassie, joins Swaha Pattanaik to discuss how the Washington-based lender is helping hard-hit countries, debt difficulties, the need for reforms, and why policy choices are more limited than in advanced economies.
LONDON (Reuters Breakingviews) - Inflation has in recent years been like Samuel Beckett’s Godot: much awaited but never turning up. That is about to change, according to economists Charles Goodhart and Manoj Pradhan.
LONDON (Reuters Breakingviews) - Charles Goodhart and Manoj Pradhan tackle an issue perplexing policymakers and investors: if, and when, price pressures will rise. The authors of “The Great Demographic Reversal” discuss ageing societies, emerging economies, and why the world won’t follow in Japan’s footsteps.
LONDON (Reuters Breakingviews) - European Central Bank President Christine Lagarde is running to stand still. Her policy rate is at a record low. But the weakness of inflation means that the real rate, which is adjusted for changes in prices, is actually rising. This may buoy the euro – the last thing that Lagarde needs.
LONDON (Reuters Breakingviews) - As befits a big buyer of overseas goods, Britain is importing a job retention scheme along the lines of those used in Germany and France. The plan that finance minister Rishi Sunak unveiled on Thursday will help the economy cope with rebounding coronavirus infections and ticks several boxes. But he is failing low-skilled workers whose roles may disappear forever.
LONDON (Reuters Breakingviews) - As budget deficits swell, one of the highest profile advocates of Modern Monetary Theory joins Swaha Pattanaik to discuss her approach to public finances, U.S. presidential hopeful Joe Biden’s economic agenda, how her thinking evolved, and her experience of academic gatekeeping.