Central banks, above all, are responsible for overseeing financial stability and controlling inflation. This research note suggests that the poor governance arrangements, conflicting goals, grandiose aspirations and distractions, along with the excessive budget and lack of core expertise in key appointments, have created the current...

The focus in current anti-inflation policy on suppressing wage growth, enforcing a permanent reduction in real wages, while ignoring the role of record profits in driving post-pandemic inflation reflects an ahistorical and ideological approach to macroeconomic management, writes Jim Stanford.

There is a vast international literature exploring the consequences of low interest rates for various banking sectors. In this paper, the author explores how this international literature relates to the Australian banking sector, which operates differently to other jurisdictions.

The Reserve Bank of Australia’s Term Funding Facility (TFF) was announced in March 2020 as part of a package of policy measures to support the Australian economy. This paper examines the effectiveness of the TFF in increasing the supply of credit to businesses, which was...

This report recommends the development of a principles-based regulatory framework for digital assets, such as private stablecoins, central bank digital currencies (CBDC), tokens and cryptocurrencies.

This report investigates the history of Australian inflation and policy choices, and provides a counter to the view that low inflation and the current inflation target is acceptable.

This paper outlines how the Reserve Bank of Australia’s bank stress testing model works. It also shows how the model was useful in a real-world crisis, at the onset of the COVID-19 pandemic.

This paper examines some of the reasons why governments approach inflation the way they do and surveys some recent contributions to the policy debate.

In this paper, the authors make a convincing case that stimulative monetary policy during the global COVID-19 pandemic contributed materially to the inflation surge that followed and which persists today. Equally important, they focus intensively on the various reasons that might have contributed to this...

In this paper, the authors examine the effect on government bond yields of three Reserve Bank of Australia policy measures implemented following the onset of the COVID-19 pandemic. They also assess the impact of the three measures on government bond market functioning.

Both major political parties support an external review of monetary policy after the 2022 election. This paper discusses some of the main issues a review should cover.

This report focuses on the interrelated economic risks that households, businesses, financial institutions and governments worldwide are facing as a consequence of the COVID-19 crisis. The report offers new insights from research on the interconnectedness of balance sheets and the potential spillover effects across sectors.

As central banks around the world prepare to launch central bank digital currencies (CBDCs), this paper looks at issues surrounding a retail version of CBDCs that would complement notes and coins for consumers.

This paper presents a comprehensive analysis of the impact of COVID-19 on debt, puts recent debt developments and prospects in historical context, and analyses new policy challenges associated with debt resolution.

The evidence has been mounting that Australia is blocking stronger agreements to end public funding of coal and gas has been mounting. This report argues that if Australia continues this behaviour, it will only provide further cover for foreign export credit agencies and other public...

Governments and multinational organisations around the world have begun exploring the feasibility of developing retail digital currencies for domestic and global payments. This policy brief does not address bitcoin or other privately issued digital currencies that are not backed by assets having intrinsic value.

This resource looks at the role that central banks and other financial regulators can play in mitigating climate-related risks to financial institutions and systems.

High-quality central bank communication can improve the effectiveness of monetary policy and is an essential element in providing greater central bank transparency. This paper investigates three important aspects of central bank communication - audience, readability and degree of reasoning.

How monetary policy affects the economy is a central question in macroeconomics. Standard economic thinking predicts interest rate cuts boost economic activity. This idea has recently been challenged by claims that changes in monetary policy have a so-called ‘information effect’. Calvin He explores this concept...

Central banks are turning their attention toward central bank digital currency (CBDC) to replace coins and bills and to provide other types of services through digital technology. This paper explores the forces that will affect the implementation of a CBDC.

This report explains China’s domestic and international ambitions in developing a central bank digital currency (CBDC), reviews the main technical framework of Digital Currency/Electronic Payment (DCEP) and discusses how the People’s Bank of China (PBOC) and private firms are working to implement it. The report...

This briefing argues that there is a solid use case for central bank digital currency (CBDC) that justifies the intense interest across multiple jurisdictions. At the same time, establishing the architecture, infrastructure and rules for access to CBDC will entail design choices that are not...

Monetary policy is not the answer to our economic problems; and central bank actions could be making matters worse. This paper outlines an argument that monetary policy in most advanced economies is suffering from overreach, and has been for much of the past decade.

The authors of this report, argue that the European Central Bank (ECB), should adopt low-carbon strategies. They suggest two such strategies in which carbon-intensive bonds are replaced with more climate-friendly bonds. These strategies would significantly reduce the climate footprint of the ECB corporate Quantitative Easing...

China’s central bank digital currency, known as ‘DC/EP’ (digital currency/electronic payment), is rapidly progressing and, if successful, will have major international implications that have not yet been widely considered by policymakers.