Monetary Policy

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International cooperation and central banks

Tuesday, 8 October 2013
article
"Crises increase the demand for central-bank cooperation in order to provide a global public good – financial stability. But they also dramatically increase its cost, and in particular the fiscal costs associated with interventions to ensure financial stability. This means that crises are very often associated with setbacks to the cooperative process, and disenchantment or disillusion about the role of central banks," says CIGI Senior Fellow Harold James.

IMF annual meetings likely to focus on recovery over reform, CIGI experts warn in new series

Tuesday, 8 October 2013
article
The 2013 annual meetings of the International Monetary Fund (IMF) will focus on the policy challenges facing the global economy, as it moves from the “Great Recession” to the “Great Transition,” on its way to a stable and sustained recovery. This is among the conclusions in a new series of commentaries from CIGI, which look ahead to the IMF and World Bank meetings later this week.

CIGI experts available for media commentary on annual meetings of International Monetary Fund and World Bank

Monday, 7 October 2013
article
Looking for expert commentary ahead of and during this week’s annual meetings of the World Bank Group and International Monetary Fund (IMF), in Washington, DC? CIGI will have experts in Washington from October 8 and available for media interviews.

Looking ahead at the US government shutdown

Wednesday, 2 October 2013
article
Caryn Lieberman
"If you look historically, the average shutdown has lasted about a week," says Martin S. Edwards, Visiting Fulbright Scholar at CIGI, commenting on the US government shutdown.

Funding Public Goods and International Financial Stability: Bridging Between Regimes

Wednesday, 2 October 2013
blog
Imagine you live on one side of a river and work on the opposite bank. Your daily commute takes you several hours because the nearest bridge is miles away. A new bridge built closer to home would save you time, money and considerable aggravation. As unrealistic as it may be, assume that the bridge can be designed such that it will never be congested, regardless of how many people use it.(Footnote: Economists will recognize that this assumption is required to preserve the formal definition of a public good, as one that is non-rivalrous.)

International Monetary Stability, Trade and the International Architecture in one Picture

Wednesday, 2 October 2013
blog
Paul Krugman has an interesting post, here, about why we shouldn’t be terribly concerned that global trade hasn’t grown as rapidly as output as it did in the past. Krugman produces a chart of U.S. trade-weighted tariffs over the past 80 years or so (below). The chart tells an interesting story of possible relevance today.

Currency Wars and Reform of the International Monetary System

Monday, 30 September 2013
video
Drawing on his 45 years at the center of international economic policy debates, C. Fred Bergsten argues that currency manipulation is the single biggest challenge facing the world economic system and costs millions of jobs. Bergsten offers bold proposals for countervailing intervention and ties between the International Monetary Fund and the World Trade Organization in evaluating currency misalignments. Following his talk, he is joined in discussion by Rohinton Medhora, CIGI President.

The Architecture of Fiscal Dominance

Monday, 30 September 2013
blog
Concerns that a continuing impasse over the medium-term direction of U.S. fiscal policy could have a negative impact on the international role of the dollar harken back to debates over the design of the post war international financial "architecture." The dollar was accorded a special role at Bretton Woods; one that imposed obligations on the U.S. as the issuer of the international reserve currency.

Time to wage war on currency wars, Bergsten urges

Friday, 27 September 2013
blog
If there’s one issue that can unite a politically divided and often dysfunctional Capitol Hill, C. Fred Bergsten believes it is the need for action against international currency manipulation. In his CIGI Signature Lecture, the renowned economic policy expert and Washington insider made a compelling case for the U.S. to respond to the practice of countries intervening in international foreign exchange markets to keep their respective currencies weak and the US dollar strong.

Architecture and Fiscal Dominance

Friday, 27 September 2013
blog
Pierre Siklos has written about the return of fiscal dominance. Traditionally, this term has been applied to a situation in which monetary policy objectives are subordinated to the need to finance large fiscal overhangs. The concern Pierre identifies is that the Federal Reserve Board's quantitative easing will be maintained longer than is desirable because of inappropriately restrictive fiscal policy. One possible effect of this is an erosion of confidence in the role of the U.S. as the key global unit of account, medium of exchange, and store of value--the three canonical roles of money.