Chair Janet Yellen on the recent Swedish experience of Riksbank policy tightening, in a speech at the conference “The New Normal for Monetary Policy,” Federal Reserve Bank of San Francisco, March 27, 2015:
The experience of Japan over the past 20 years, and Sweden more recently, demonstrates that a tightening of policy when the equilibrium real rate remains low can result in appreciable economic costs, delaying the attainment of a central bank’s price stability objective.
Discussion (slides) of the paper “Financial Stability and Optimal Interest-Rate Policy” by Andrea Ajello, Thomas Laubach, David López-Salido, and Taisuke Nakata, Federal Reserve Board, at the conference “The New Normal for Monetary Policy,” Federal Reserve Bank of San Francisco, March 27, 2015.
Paul Krugman has a post on self-justifying Swedes.
In an interview in Bloomberg, Riksbank Deputy Governor Per Jansson again tries to defend the indefensible, the Riksbank’s sharp tightening of monetary policy in the summer of 2010. From the summer of 2010 to the summer of 2011, the Riksbank majority increased the policy rate from 0.25 percent to 2 percent. Continue reading
Presentation at the conference “Financial Liberalization, Innovation, and Stability: International Experience and Relevance for China,” Third Joint Conference, People’s Bank of China and International Monetary Fund, Beijing, March 16, 2015.
In June 2009 I gave a speech at a conference at the Federal Reserve Board, Washington DC, and argued that the effective lower bound for the policy rate was not zero but negative, and not hard but soft. The speech was published in Journal of Money, Credit and Banking 2010.
“Low Inflation Calls for Patience in Normalizing Monetary Policy,” speech by Charles Evans, President of the Federal Reserve Bank of Chicago, on March 4, 2015.
“Negative Interest Rates: Helpful or Harmful?” Interview in Top of Mind, Issue 32, February 27, 2015, Goldman Sachs.
Kate Davidson, “How Some Central Banks Are Reviewed Around the World,” Real Time Economics, The Wall Street Journal, February 20, 2015.
Peter Wolodarski, “Time for Stefan Ingves to hand over the baton” (“Dags för Stefan Ingves att lämna över stafettpinnen“, in Swedish), editorial in Dagens Nyheter, Februari 15, 2015.
“Inflation targeting and leaning against the wind,” paper presented at the Conference on Fourteen Years of Inflation Targeting in South Africa and the Challenges of a Changing Mandate, South African Reserve Bank, Pretoria, October 30-31, 2014. Revised February 2015. Paper. Slides. Program. Continue reading
New publication: “The Possible Unemployment Cost of Average Inflation below a Credible Target,” American Economic Journal: Macroeconomics 7(1) (2015) 258-296.
“Noll ränta räcker inte“, Ekonominyheter från Ekot, Sveriges Radio (“Zero interest rate is not enough,” Radio Sweden’s Economy News (in Swedish)), December 30, 2014.
“Helikopterpengar” (“Helicopter money,” in Swedish), Ekonomistas post.