Ample Reserves vs Scarce Reserves: Reserve Regimes Compared
The choice between ample reserves vs scarce reserves shapes how the Fed sets the policy rate, runs its balance sheet,...
Central Banking
Stay up-to-date with the latest news and analysis on central banking. We cover everything from monetary policy to interest rates.
Repo Market Standing Repo Facility: September 2019 Spike
The September 2019 SOFR spike revealed how brittle US money market plumbing had become. The Standing Repo Facility, launched in...
Dot Plot FOMC: Decoding the Summary of Economic Projections
The FOMC dot plot is the most-cited chart in monetary policy. Reading it well requires looking past the median to...
Forward Guidance Frameworks: From Open-Mouth Operations to Date-Based Pledges
Forward guidance is how central banks move long-term interest rates by managing expectations. From qualitative language to date-based pledges, the...
Average Inflation Targeting: How the Fed Replaced Strict 2 Percent in 2020
Average inflation targeting is the framework the Fed adopted in 2020 to address persistent inflation undershoots and the lower-bound constraint....
Neutral Rate of Interest: r-star and What It Means for Policy
The neutral rate of interest r-star is the unobservable benchmark that defines monetary policy stance. Estimates span 170 basis points,...
Bank of Japan Explained: QQE, Yield Curve Control, and the 2024 Exit
The Bank of Japan explained from its 1882 founding through QQE, yield curve control, and the historic March 2024 exit...
Bank of England explained: MPC, Bank Rate, Inflation Target
Bank of England explained through the MPC, Bank Rate, inflation targeting, financial stability, independence, and the institution’s role in the...
European Central Bank Explained: Governing Council and Twenty-One Economies
The European Central Bank explained for the 358 million people across 21 economies that share the euro: structure, mandate, tools,...
Federal Reserve Explained: Structure, Mandate, and How Decisions Are Made
The Federal Reserve explained: how the US central bank's structure, dual mandate, and toolkit shape monetary policy and financial stability...