
Blog posts tagged by tag: Banking Sector
-
The anxiety of the small saver in a world of negative interest rates
A year ago I wrote a series of articles on monetary policy action by central banks in recent decades. I began by summarizing the state of affairs of a global economy in which central banks have acquired an enormous role so much so that their continuous interventions, first conventional and then "extraordinary", have become an everyday economic reality. While their role in managing the global financial crisis was key as they avoided a collapse in the liquidity of the system that would have undoubtedly aggravated the depression, their effectiveness in facilitating a return to growth, job creation, global deleveraging, financial sector risk reduction, sustainability of public finances and structural imbalances in their respective states is doubtful.
-
Forward Guidance, a primer
Central bankers do not have an easy job at the best of times. They must work in a world of constant yet random shocks, imperfect models and political pressures, while trying to hit a moving inflationary target six months to a year down the line. All of this while working with a rather limited arsenal. Since 2008, central banks (CB) have used the interest rate as the primary tool to influence economic policy. Interest rates have approached, or in some cases even exceeded, the zero lower bound, with no sign of definite recovery. Drastic times call for drastic measures and central bankers have resorted to so-called unconventional monetary policy in order to provide additional monetary accommodation as a last resort. One such unconventional method termed “forward guidance” has been employed in one form or another by CBs around the world.
Top Posts
-
Croatia in the Eurozone: Interview with FocusEconomics panelists
-
What's in store for Russia's economy this year?
-
What's Europe's 2023 economic outlook?
-
How will China’s latest Covid-19 curbs affect the economy?
-
Will the World Cup bring home an economic win for Qatar?
-
The World's Fastest Growing Economies
-
Which will be the most miserable economies in 2023?
Featured Posts
-
Croatia in the Eurozone: Interview with FocusEconomics panelists
-
What is the outlook for U.S. oil production and prices?
-
What's in store for Russia's economy this year?
-
What's Europe's 2023 economic outlook?
-
Our analysts' expectations for 2023
-
How will China’s latest Covid-19 curbs affect the economy?
-
The World's Fastest Growing Economies
Twitter @FocusEconomics
-
Price pressures will soften in 2023 on slowing economic activity and lower commodity prices. Nevertheless,… https://t.co/oNFT7MF3sH
2 days ago
-
In our latest insight piece, we interview Mihály András Kovács, senior advisor at OTP Bank, and Hrvoje Dolenec, chi… https://t.co/Gzrcid43Nk
3 days ago
-
In our latest post, economist Adrià Solanes Roca discusses the upcoming presidential elections in Cyprus and their… https://t.co/T4Ikur25Qi
3 days ago
-
In our latest post, economist Magdalena Preshlenova discusses the benefits and challenges for the Croatian economy… https://t.co/I3ILTmu4v6
4 days ago
-
In our latest webinar, our economists examine the outlook for Latin America's economy this year. Spoiler alert: Eco… https://t.co/wCXk7AY32n
5 days ago
Sample Report
Get a sample report showing our regional, country and commodities data and analysis.