It took me a while to convince myself to write about “neo-fisherism” as a solution to low trend inflation. The motivation behind neo-fisherism is relatively intuitive – we have observed nominal interest rates and inflation move together, and require an explanation that supports that stylised fact. Furthermore, the idea behind neo-fisherism is that there is […]
In my previous posts on the liquidity trap and about US Treasury bond purchases I have mentioned that central banks and governments should coordinate their policies as a part of unconventional monetary policy when the interest rates are near the zero lower bound and inflation is persistently low. However, there are costs and benefits associated […]
Over 2019, interest rates for a variety of fixed terms have been declining – a topic that is likely to be front and centre at Jackson Hole over the coming days. The weird behaviour of interest rates is something that is causing some big name economists to rethink monetary policy – such as Larry Summers […]
With all this talk about a zero lower bound and unconventional monetary policy I was keen to refresh myself on “liquidity traps” – as I remember people chatting away about these when I was at university. So what is a liquidity trap, how does it refer to what is going on now, and how can […]
Forward guidance and unconventional monetary policy I recently noticed that swap rates purchases were discussed as an unconventional monetary policy tool are discussed in Reserve Bank’s bulletin “Aspects of implementing unconventional monetary policy in New Zealand”. Namely, they state: “Purchasing interest rate swaps could be a way to signal that the Reserve Bank expects to […]
People, who are in labour force, generally spend one third of their daily time at work. A lot of them find working five days a week quite stressful and there are various reasons for it. I often question myself how the counterfactual of my work-life balance might look like to keep me motivated at work […]