Monetary Policy in a Cash Economy: The Hollow Rate
On 27 July 2026 the State Bank of Pakistan held its policy rate at 11.5 percent. Analysts read the statement,...
Central Banking
Stay up-to-date with the latest news and analysis on central banking. We cover everything from monetary policy to interest rates.
Reserve Bank of India Explained: Inflation Targeting and the Policy Corridor
The Reserve Bank of India explained: the 2016 shift to flexible inflation targeting, the Monetary Policy Committee, the repo rate...
Reserve Bank of Australia Explained: The Dual Mandate and a Reformed Board
The Reserve Bank of Australia explained: its dual mandate of price stability and full employment, the 2025 board reform, the...
State Bank of Pakistan Explained: Autonomy, Inflation Targeting, and Fiscal Dominance
The State Bank of Pakistan explained: how the 2022 autonomy reform, inflation targeting, and the pull of fiscal dominance shape...
People’s Bank of China Explained: Reserve Ratios, MLF, and Capital Controls
The People's Bank of China explained: how China's central bank uses reserve ratios, the reverse repo rate, the MLF, re-lending,...
Bank of Canada Explained: Forty Years of Inflation Targeting
The Bank of Canada explained: how the country's central bank, its 1991 inflation target, the Governing Council, and the overnight...
The Taylor Rule Reaction Function: Estimation and Limitations
The Taylor rule reaction function estimates how central banks respond to inflation and slack, but data timing, identification, and regime...
FX Intervention Sterilization: How Central Banks Move Currencies
FX intervention sterilization lets a central bank move its currency through balance-sheet operations without changing domestic interest rates, with effectiveness...
Fiscal Dominance: When Government Debt Constrains Monetary Policy
Fiscal dominance describes the configuration in which government debt and deficits constrain a central bank's ability to use interest rates...
Central Bank Swap Lines: Global Dollar Backstop
Central bank swap lines are the Federal Reserve's primary crisis backstop for the offshore dollar system, used at scale in...