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Central Banking

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Posts: 11

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Monetary Policy Effectiveness in Kazakhstan: Results With a Small Macro Model

Published: August 29, 2025 00:00

This paper assesses the effectiveness of monetary policy in Kazakhstan using a small macro model and identifies alternative plausible economic structures consistent with priors on the sign of responses of macro variables to structural shocks. Monetary…

Inflation Since the Pandemic: Lessons and Challenges

Published: August 29, 2025 00:00

This paper reviews the drivers of the post-pandemic U.S. inflation surge and subsequent decline, including the behavior and role of inflation expectations. The sharp rise in inflation reflected severe imbalances between supply and demand stemming from the…

The Impact of Central Bank Climate Communication on Green Bonds

Published: August 29, 2025 00:00

This paper analyzes how central banks' communication influences corporate financial decisions and instruments. Empirically, we find that more active central bank communication is associated with a rise in firms' green bond issuance. The effect seems to be…

Climate change monetary policy and price stability in South Africa

Published: August 28, 2025 00:00

Climate change affects the effectiveness of monetary policy, particularly in maintaining price stability. In a two-period theoretical model with heterogeneous agents, monetary policy and climate externalities, we establish that a trade-off exists between…

The impact of extreme weather events on the term structure of sovereign debt

Published: August 25, 2025 00:00

This paper examines the impact of extreme weather events on the term structure of sovereign bond yields in a global panel. Using local projections to estimate the dynamic response of yields and their expected short rate and term premium components to such…

Climate change shocks and monetary policy in South Africa a simulationbased analysis

Published: August 21, 2025 00:00

This study explores the effects of climate shocks on South Africas macroeconomic stability and monetary policy dynamics through a simulation-based dynamic stochastic general equilibrium model. It incorporates climate variability as a key factor influencing…

Monetary Policy Under Fiscal Stress: A Forward-Looking Analysis of Fiscal Dominance

Published: August 20, 2025 00:00

Subdued economic activity and low tax revenues, especially during crises, drive borrowing and increase public debt. During these periods, to ease the debt burden, central banks may face pressure to deviate from policy targets. Under fiscal dominance, debt…

Central bank interventions and asset market liquidity

Published: August 16, 2025 00:00

Central banks around the world routinely engage in asset purchases in secondary markets as part of implementing monetary policy or enhancing market liquidity, but the effects of such interventions are not yet fully understood. We develop a multi-asset…

Aggregate Lending Standards and Inequality

Published: August 12, 2025 00:00

We study the effects of movements in aggregate lending standards on macroeconomic aggregates and inequality. We show in a New Keynesian model with heterogeneous households and housing that a looser loan-to-value (LTV) ratio stimulates housing demand,…

Transaction Process, Seigniorage Channel, and Monetary Effectiveness in Flexible Price Economy

Published: August 12, 2025 00:00

Embedding seigniorage and transaction process into the RBC model, this paper proposes a new monetary economy, seigniorage channeled monetary economy, briefly SCME, in which monetary shocks can affect the real variables effectively and persistently in…

Decomposition of inflation in Azerbaijan into supply and demand components according to supermarket data

Published: August 11, 2025 00:00

The balance between supply and demand influences inflation and understanding whether one factor predominates the other has significant implications for economic policy. Distinguishing the contributions of supply and demand factors to inflation offers…