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Scoop.it!
The move comes as countries start to remove emergency measures put in place during the pandemic. 
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Scoop.it!
Tweaking inflation targets is not an adequate response to the challenges facing major economies
Graham Watson's insight:
Analysis of the current policy environment: have we run out of current monetary policy tools. With interest rates already low, there seems to be little room to cut them and stimulate growth. That said, President Trump is keen to see US rates fall - but I suspect that this would weaken his hand further as regards future rate cuts.
This article raises a number of issues - notably the notion of the liquidity trap - and I wonder how we will view this sort of thinking in years to come.
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Scoop.it!
The move comes as central banks around the world prepare to exit emergency stimulus measures.
Graham Watson's insight:
It seems that the unwinding of global monetary policy has begun, albeit tentatively, with South Korea raising its interest rate from 0.5% to 0.75%.
Would you expect this magnitude of change to have much effect? And can you explain why?
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And elsewhere things are slowly returning to 'normal' with New Zealand's central bank raising interest rates by 0.25% to 0.5%.
It seems odd to be suggesting that an interest rate of 0.5% is 'normal' - and you might argue whether or not this change is going to have much impact on the real economy.