Everything you need to know about central bank policy around the world Federal Reserve: A steady climb ECB: Dovish tapering People's Bank of China: Safeguarding against trade wars Bank of England: Gearing up for an August hike, despite mixed data Bank of Japan: Taper plans bogged down by trade & ECB Bank of Canada: Twists and turns
The World Interest Rates Table reflects the current interest rates of the main countries around the world, set by their respective Central Banks. Rates typically reflect the health of individual economies, as in a perfect scenario, Central Banks tend to rise rates when the economy is growing and therefore instigate inflation.
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What is the Jackson Hole Symposium?
It is an annual economic policy symposium held in Jackson Hole, Wyoming. Organized by the Federal Reserve Bank of Kansas City since 1978, the three-day gathering is designed as a forum for central bankers, policy experts, and academics. This year’s topic on focus was “Fostering a Dynamic Global Economy”, and it lasted from August 24th to August 26th.
Key speeches from Janet Yellen, Chairwoman of the US Federal Reserve, and Mario Draghi, President of the European Central Bank, were widely expected as a roadmap of their economic policies for the next months.
With the Fed meeting coming up, a lot has being discussed on about whether the US Central Bank is about to raise interest rates. Nonetheless, there appears to be a lack of available articles which explain what monetary policy is, its objectives, and the incentives of monetary authorities when they resort to policy actions. This post aims at elaborating on all these topics in an effort to provide a deeper understanding of monetary policy.
In the previous post of this series, we examined what causes a need for policy intervention in the monetary sector of the economy and through which channels monetary policy affects the economy. In the second part of this series I will walk you through the causes behind Central Banks’ decisions to move interest rates and the various incentives Central Bankers have across the world.
In the previous two parts of this series, we dealt with what monetary policy is, the channels through which it affects the economy and the priorities of Central Banks. In the second addition to this series, we elaborate on which indicators Central Banks focus on when it comes to deciding if policy rates should be changed. As discussed previously, most Central Banks are really inflation targeters.