Central banks are facing a new and uncertain landscape. The reliance on one policy objective – inflation targeting – and one tool – interest rates – has proven to be inadequate. Despite record-low interest rates over many years and massive liquidity injections by central banks through asset purchase programs, inflation has not picked up as expected in many developed economies. Central banks’ operational independence has been severely questioned. So where do central banks go from here?
This Special Issue of New Zealand Economic Papers will be devoted to addressing these questions using evidence-based economic analysis. We welcome research on all aspects of central banking, including its practices, challenges and the future. We welcome both national and international submissions.
The Reserve Bank of New Zealand will host the 18th Central Bank Macroeconomic Modelling Workshop. The annual series of workshops aims to give policymakers and academics the opportunity to discuss issues related to the class of models used for policy analysis.
This year’s workshop on “Challenges for Open Economies” focuses on the growing real and financial linkages among economies, and their implications for policy analysis. Topics of particular interest include, but are not limited to: exchange rate determination and impacts, the terms of trade and commodity prices, international factor mobility, policy spillovers and the international dimension of inflation dynamics.
The workshop will be held at the InterContinental Hotel in Wellington, New Zealand on 7-8 December 2015.
This year marks the 25th anniversary of the Reserve Bank of New Zealand Act (1989), which granted the Reserve Bank of New Zealand (RBNZ) its independence, introduced price stability as its primary objective, and thus instituted inflation targeting as a monetary policy regime. To mark this occasion, RBNZ and the International Journal of Central Banking (IJCB) are organising a conference on 1‐3 December 2014 in Wellington, New Zealand. More
On 22 October the Reserve Bank of New Zealand will host a one-day workshop on interactions between monetary and macro-prudential policies in Wellington, New Zealand. The workshop aims to draw together policy analysis and research that contributes to the debate on the design of monetary and macro-prudential policies. More
Alex Tabarrok posted at Marginal Revolution about sticky wages. It’s an interesting bit of mathematics. I can see his point, that sticky wages for employed people can keep the labour market from adjusting. Because the unemployed are a minority of the labour force, even large reductions in the wages they are willing to accept have a small impact on the total wage bill.
My reaction to this bit
If all employed workers accepted a 5% pay cut (or if the government ordered such a cut) and the Fed kept targeting inflation, we’d experience rapid economic growth.
I’ve been turning this over in my head for weeks. Obviously, the economic/political problems in the US are one of biggest economic issues going, and I’ve not blogged about them. Part of the reason I haven’t is that it is very difficult to separate the political from the economic. Continue reading →
Nationwide spending through the Paymark electronic payments network dropped 6% from year-ago levels on Tuesday 22 February, the day of the second major Christchurch earthquake, mostly due to a 33% spending drop in the Canterbury region. Subsequent to this there has been only partial recovery in Canterbury and some shift in spending to South Canterbury, but spending beyond these two regions has resumed at the faster-than-of-late 6% p.a. witnessed earlier in February.
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