Haku

The existence of a lower bound for nominal interest rates complicates the monetary policy. Central banks have lately tried to circumvent this problem by applying non-standard monetary policy measures.

The symmetry of the guideline for the monetary policy stance has recently attracted considerable attention in central banks’ communications. Both the Fed and the ECB have, in their recent strategy reviews, laid out that ...

Back to the ‘70s? I’m referring to the talk in Europe and elsewhere of ‘stagflation’, a toxic blend of sluggish economic growth, escalating unemployment and simultaneously surging inflation.

It has been a year since the inflation rate in India exceeded the target range of 2­–6 percent and started to hover between 6–8 percent (Chart 1). The survey evidence signals that households expect inflation to continue ...

Inflation-targeting central banks adjust their interest rates in response to inflation. If inflation is well below target and monetary policy is credible, consumers and investors should expect interest rates to fall. If, ...

Conducting monetary policy in the current low inflation and low interest rate environment is a case apart, unlike the ‘old normal’. The Bank of Finland organized an international research conference to discuss this dilemma, ...