In this paper, we do try to estimate the likely effects of debt indexation on average government borrowing costs. But we do not agree that the analysis of debt management is primarily a question of comparing the average interest costs to the government of different types of debt.

This paper examines the evolving role of reserve requirements as a policy tool in China. Since 2007, the Chinese central bank (PBC) has relied more on this tool to withdraw domestic liquidity surpluses, as a cheaper substitute for open-market operation instruments in this period of rapid FX...

Keynesian economists have generally supported quantitative easing (QE) on grounds it increases aggregate demand and anything that increases demand at this time of demand shortage is welcome. This paper argues that response may be misplaced. QE may back fire with respect to demand stimulus,...

Lehman Brothers’ failure required the Central Banks of the main developed and emerging countries to implement non-traditional monetary policy measures with a degree of coordination, cooperation and pragmatism that finds no precedents in history so as to prevent the deepening of the worst...

What is the lesson this financial crises has taught us, from a monetary perspective? One of the basic causes for this crisis has been abundant liquidity. Another cause has been non-performant loans granted and extended by banks to an unreliable clientele known for not being able to return these...

The paper aims to analyze the reasons why monetary policy is put into question by the transformations suffered during the recent decades by the financial systems of advanced industrial countries. It also seeks to highlight opportunities for improving monetary policy and its instruments, in...

South Africa’s macroeconomic framework has served the economy well, but should be strengthened to make the economy more resilient to external shocks. Enhancing the credibility of the inflation target would provide the monetary authorities with more space for flexibility in the face of...

The main goal of this paper is to analyze the effects of monetary policy shocks in Peru, taking into account two important issues that have been addressed separately in the VAR literature. The first one is the difficulty to identify the most appropriate indicator of monetary policy stance, which...