scholarly journals Central banks’ voting contest

2020 ◽  
Author(s):  
Wojciech Charemza
Keyword(s):  
Monetary Policy ◽  
Federal Reserve ◽  
Activity Index ◽  
Selection Criterion ◽  
Central Banks ◽  
Decision Function ◽  
The Us ◽  
Dynamic Simulation Model ◽  
Voting Decisions ◽  
The Uk

This chapter compares how effective different voting algorithms are for the decisions taken by monetary policy councils. A voting activity index is proposed and computed as the ratio of the number of all possible decisions to the total number of different combinations of decisions available to a given composition of an MPC. The voting systems considered are these used by the US Federal Reserve Board and the central banks of the UK, Australia, Canada, Sweden and Poland. In the dynamic simulation model, which emulates voting decisions, the heterogeneous agents act upon individual forecast signals and optimise a Taylor-like decision function. The selection criterion is based on the simulated probability of staying within the bounds that define the inflationary target. The general conclusion is that the voting algorithm used by the Bank of Sweden is the best given the criteria applied, especially when inflation is initially outside the target bounds. It is observed that a decrease in inflation forecast uncertainty, which is inversely proportional to the correlation between the forecast signals delivered to members of the monetary policy board, makes the voting less effective.

Some results of research on new crisis predictors

2020 ◽  
pp. 86-106 ◽  
Author(s):  
Yu. A. Danilov ◽  
D. A. Pivovarov ◽  
I. S. Davydov
Keyword(s):  
Monetary Policy ◽  
Federal Reserve ◽  
Critical Analysis ◽  
Financial Stability ◽  
Central Banks ◽  
Stability Function ◽  
Treasury Bonds ◽  
Global Crisis ◽  
The Us ◽  
New Generation

The article provides some assumptions and hypotheses that have arisen as a result of a critical analysis of a new generation of crisis predictors. Three assumptions/hypotheses are submitted to the reader’s court: 1) on the possible impact of the negative spread of the yield on US Treasury bonds on the decisions of the US Federal Reserve; 2) on the effect of the central banks fulfilling the financial stability function on their monetary policy; 3) on the existence of objective reasons for Russia’s later entry into the global crisis of 2007—2009. The latter circumstance, along with the fact that some of the Russian recessions have significant internal causes, indicates the need for forming domestic crisis predictors. The assumptions and hypotheses cited in the article are debatable.

CHALLENGES OF DEVELOPMENT OF AN ANTI-CRISIS STRATEGY TO OVERCOME THE CORONOVIRUS PANDEMIC AND ITS CONSEQUENCES

2020 ◽  
pp. 68-83
Author(s):  
Elena Lutskaya ◽  
Keyword(s):  
Monetary Policy ◽  
Federal Reserve ◽  
Financial System ◽  
Global Markets ◽  
Federal Reserve System ◽  
Us Economy ◽  
The Us ◽  
Reserve System

The article examines the views of Western researchers on overcoming the COVID-19 crisis and its consequences. The main focus is on the monetary policy of the Federal Reserve system - the most developed financial system that affects both the US economy and global markets.

scholarly journals Janus Face of Inflation Targeting_Walter_PrePrint

2019 ◽  
Author(s):  
Timo Walter
Keyword(s):  
Monetary Policy ◽  
Inflation Targeting ◽  
Recent Trend ◽  
Central Banks ◽  
Fine Tuning ◽  
Fine Grained ◽  
Prototype Development ◽  
The Us ◽  
Fundamental Uncertainty ◽  
Overall Effectiveness

In the 1980s, central banks around the world stumbled upon a new method for conducting theirmonetary policy: instead of the heavy-handed, „hydraulic“ manipulation of monetary aggregates,they learned to „govern the future“ by managing the expectations of market actors directly.New and better indicators and forecasts would provide the basis for a new communicativecoordination of markets expectations, permitting a more fine-grained and effective implementationof monetary policy, particular in controlling inflation.Focusing on the US Federal Reserve’s prototype development of inflation-targeting, this paper putsthis storyline to the test. Against the recent trend in sociology to conceive of expectations andfuturity as modes of coordination that thrive under conditions of (fundamental) uncertainty that defyrational calculation, I argue that futurity and the formation expectations inextricably depend onprior processes of formalization.Examining the transition to modern ‘inflation targeting’ monetary policy, I show how theeffectiveness of coordination by expectation is achieved by extensive processes of proceduralizationand standardization. While increasing the technical efficiency of fine-tuning expectations, thesegains are only possible because of the procedural narrowing of the scope of communicativeinteraction, which may significantly affect the overall effectiveness of this mode of coordination.I conclude with a call to more closely examine how formal and informal modes of coordination aremutually interdependent – and how the nature of their entanglements affects their effectiveness.

scholarly journals The Federal Reserve Banks New Monetary Policy Tool

2012 ◽  
Vol 10 (9) ◽  
pp. 533
Author(s):  
David Gordon
Keyword(s):  
Monetary Policy ◽  
Federal Reserve ◽  
Vital Role ◽  
Open Market ◽  
Federal Reserve Bank ◽  
Us Economy ◽  
Policy Tool ◽  
Reserve Bank ◽  
The Us ◽  
Demand Deposit

The Federal Reserve Bank (FED) plays a vital role in the US economy. The roles and functions of the Fed are discussed here. This paper also offers an explanation of the traditional tools the Fed uses to conduct monetary policy. Open market operations are explained. The important role of the discount rate is discussed. The legally required reserve ratios are also explored. This author believes that the Fed has recently created a new tool. This tool is the payment of interest on demand deposit accounts at the Fed. This new tool is explained and its ramifications explored. The functions of monetary policy are also expanded upon in this paper.

THE LEGAL STATUS OF CENTRAL BANK INVESTMENTS UNDER ENGLISH LAW

1998 ◽  
Vol 57 (2) ◽  
pp. 374-390 ◽  
Author(s):  
WILLIAM BLAIR
Keyword(s):  
Legal Status ◽  
Case Law ◽  
Central Banks ◽  
The Public ◽  
State Immunity ◽  
The Us ◽  
English Law ◽  
The Uk ◽  
Special Provision ◽  
Made In

Central banks have enormous sums of money in various forms of investments. When claims are made either against the banks themselves, or against other governmental bodies, issues arise as to whether these assets can be attached, and made available to satisfy judgments. The article explains how central banks are treated in English law. It explains the special provision made in respect of their assets under the State Immunity Act 1978. There is wide immunity from attachment, though questions can arise as to the ownership of such assets. The UK legislation is, in some respects, wider than its counterpart, the US Foreign Sovereign Immunities Act 1976. Recent case law is described in which the English courts have recognised that the public responsibilities of central banks have to be taken account of when determining the extent of their liability to attachment.

scholarly journals Monetary Policy Normals, Future and Past

2017 ◽  
Vol 241 ◽  
pp. R5-R12 ◽  
Author(s):  
Peter Sinclair ◽  
William A. Allen
Keyword(s):  
Monetary Policy ◽  
Interest Rates ◽  
Central Banks ◽  
Policy Framework ◽  
Current Policy ◽  
Macroprudential Policy ◽  
New Normal ◽  
Policy Measures ◽  
The Uk ◽  
Monetary Policy Framework

The paper looks at the ‘new normal’ in so many of the world's central banks, and specifically the UK. It examines the position of the monetary policy framework, instrument settings, the underlying models, unconventional policy measures, real interest rates, and the interface with macroprudential policy. It explores both the advantages and challenges involved in any move to return towards pre-crisis arrangements, and offers suggestions for possible ways in which current policy dilemmas might be resolved.

Leading central banks mould investor sentiment

2015 ◽  
Keyword(s):  
Central Bank ◽  
Federal Reserve ◽  
Developing Economies ◽  
Investor Sentiment ◽  
Oil Prices ◽  
Central Banks ◽  
Euro Crisis ◽  
Content Type ◽  
The Us ◽  
Country Specific

Significance In the worst start to a year for US equities since 2008, the benchmark S&P 500 index fell 0.7% during the week ending January 10. December's employment report showed US non-farm payrolls rising by a robust 252,000, but average hourly earnings declined, accentuating deflationary fears. The dollar continued to strengthen against the euro on concerns about a possible euro crisis over Greece and the introduction of sovereign QE by the ECB. With the US Federal Reserve preparing to raise rates, investor sentiment remains fragile. Impacts The tug-of-war between central bank largesse and country-specific, geopolitical and economic risks will become more intense. Markets will focus on renewed fears of 'Grexit' and on concerns about German opposition to an ECB sovereign QE programme. The relentless oil prices slide, exacerbated by the dollar's strength, will put further strain on EM assets. The ruble is likely to weaken further, increasing the scope for contagion to other developing economies.

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