Monetary Policy

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Economist and venture capitalist William H. Janeway to discuss lessons from capitalism, ‘innovation economy,’ in CIGI lecture

Thursday, 27 February 2014
article
William H. Janeway, economist and senior adviser at Warburg Pincus, will discuss the dynamics of the innovation economy, at the next Signature Lecture at CIGI.

New CIGI-sponsored papers explore reserve currency politics and implications for reform of international monetary system

Thursday, 20 February 2014
article
Allowing emerging economies to issue debt in nominal local currency units would offer risk-sharing benefits and bring some stability to debt-to-GDP ratios, according to one of two new papers co-published by CIGI.

First among men

Saturday, 15 February 2014
article
Peter Wilson
Domenico Lombardi, Director of CIGI's Global Economy Program, argues that such issues such as green growth, income inequality and gender inclusion are not central to the IMF's mandate to protect financial stability. Instead, Lombardi says these issues sit more comfortably with the aid and development role of the Fund's sister organization, the World Bank

Is this time different?

Friday, 14 February 2014
blog
Financial storms raged around the globe late in the month, as capital raced out of countries that, by some accounts, had hitherto been the darling of international investors. The proximate cause of this turbulence was, of course, the so-called “tapering” of the US Federal Reserve’s program of bond buying — quantitative easing. And the resulting taper tantrum has led some to invoke the dreaded “C” word.

Reforming the International Monetary System in the 1970s and 2000s: Would an SDR Substitution Account Have Worked?

Tuesday, 11 February 2014
publication
Robert N. McCauley, Catherine R. Schenk
This paper analyzes the discussion of a substitution account in the 1970s and how the account might have performed had it been agreed in 1980. The substitution account would have allowed central banks to diversify away from the dollar into the IMF’s Special Drawing Right, comprised of US dollar, Deutschmark, French franc (later euro), Japanese yen and British pound, through transactions conducted off the market.

Adjustment Challenges in the International Economy: Bretton Woods Revisited?

Monday, 10 February 2014
blog
Seventy years ago this July, representatives of the Allied and United Nations then engaged in the final year of the Second World War gathered at the Mount Washington Hotel, Bretton Woods, New Hampshire, to draft a truly remarkable document.

The Tensions in International Banking, Part II

Friday, 7 February 2014
blog
A previous post, here, discussed the tensions in the internal governance of international banks, specifically the balance between growing the balance sheet and risk management. There is, however, another tension between efficiency and stability that also requires a judicious balance. Since the global financial crisis, regulatory reforms have grappled with this tension.

CIGI appoints expert on international political economy and Chinese politics as Senior Fellow

Tuesday, 4 February 2014
article
CIGI is pleased to announce the appointment of Hongying Wang as a CIGI Senior Fellow, effective immediately.

Promoting the International Use of Emerging Country Currencies: The Case of Local Currency Debt Issuance for Latin America and the Caribbean

Friday, 24 January 2014
publication
Andrew Powell
This paper focusses on the use of a currency to denominate liabilities such as loans or bonds — more precisely, the value of being able to issue debt externally in one’s own local currency. It considers, in particular, the countries of Latin America and the Caribbean, arguing that global currency markets remain dominated by the US dollar and a very few other global currencies.

What is uncertainty? Reflections on monetary policy in the crisis and beyond

Wednesday, 22 January 2014
blog
The premise of this blog is simple: prospects for global growth and development are clouded by a miasma of uncertainty that stifles investment and demand. The analytics of the problem are captured by the option value of waiting — the notion that uncertainty creates an incentive for individuals to "wait and see" rather than invest and spend. A similar fog of uncertainty prevailed during the years of stagnation in the Great Depression; FDR's admonition, "the only thing we need to fear, is fear itself," was intended to rouse people from the stupor of uncertainty and get the economy moving again.