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.
Charting the Global Economy: U.S. Job Market Springs BackThe U.S. labor market defied expectations for a Depression-style surge in unemployment as pandemic-related lockdowns began to lift and the European Central Bank boosted its bond-buying program to ease the economic pain wrought by the coronavirus.
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.
New DirectionsWhat’s that saying about crisis and opportunity? Andrew Bailey and François Villeroy de Galhau, governors of the central banks of England and France respectively, wrote a Guardian editorial today warning countries that rebuilding after coronavirus must be done with climate change in mind. They encouraged officials to “build back better,” focusing on renewable energy rather
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.
ECB defies German judges with €600bn of fresh stimulus, risking a constitutional crisis in AugustThe European Central Bank has doubled down on emergency stimulus with an extra €600bn blitz of bond purchases, brushing aside dissenters on its own governing council and risking a fatal showdown with Germany’s top court.