In this post, I am going to talk about the efficacy of monetary policy in the face of uncertainty. In an earlier post, I have talked about uncertainty reducing interest rate sensitivity – but does that mean that the efficacy of monetary policy has declined? No, as ultimately, we need to think about how any […]
In this post I am going to discuss how a change in labour force growth can explain firms’ entry/ exit rates. Recent findings by Hopenhayn et al (2018) for the US motivated me to think about this relationship in a NZ context. Furthermore, the authors linked these entry and exit rates to “dynamism” and therefore […]
In a recent response to questions, The Reserve Bank of Australia has listed six options of unconventional monetary policy that is considered in an event of extreme policy implementation. Westpac economists have also talked about potential unconventional monetary policy tools applicable to the NZ case here – this is worth a read, but is a different […]
Recently I’ve been trying to get my head around the difference between a “sterilized” asset purchase by a central bank and an “unsterilized” purchase. Here is where I’ve gotten to – happy for any comments or clarifications!
Although GDP is a good measure of what it is supposed to measure, there are always questions about whether it is the right measure when asking a given policy question. This was the driving motivation behind the Living Standard’s Framework and the development of a suite of measures to inform our views on wellbeing, as […]
As per my earlier post, this follow up aims to understand how uncertainty influences monetary policy. Although we will use the lens of investment, these arguments hold for planned expenditure in the economy more generally.