How Fed Could Goose Economy via Yield-Curve ControlCentral banks set short-term rates and markets set the rest, right? That’s just the way thing work -- except in dire need, like when facing a pandemic’s massive economic disruption. The U.S. Federal Reserve is just the latest central bank to give serious consideration to a policy called yield-curve control that seeks to hold down longer-term interest rates by capping what the government pays on its debt.
Helicopter Money: Way out of Crisis or Fallacy of Traditional Economics?As the recession deepens, world governments consider anything to overcome it, including handing out cash to everybody—an unconventional measure known as helicopter money. In this piece, we take a look at this concept, its role in the economy, and the related shortcomings that may emerge in the long-run.1
Record Rate Cuts Leaves Emerging Markets Mulling QEEmerging market central banks have cut rates by more than 20 percentage points in the last three months to stimulate their coronavirus-ravaged economies, according to Bloomberg Economics. A number are also considering asset purchase programs. Unconventional monetary policy carries unique risks for emerging markets: With central bank independence less well-established, the risk of fiscal dominance is greater.
RBI Pushes Back on Billionaire Brothers’ Plan to Raise IndusInd StakeIndia’s central bank pushed back on the billionaire Hinduja brothers’ plan to raise stake in IndusInd Bank Ltd., which has lost more than 70% of its market value this year, according to people familiar with the matter.