What are the likely next steps for developed market central banks?
The developed market monetary policy landscape is currently undergoing some transformative changes. Economists seem to agree that it has reached an inflection point. The Savvy Research team has curated the most popular monetary policy white papers. They cover a variety of themes, such as helicopter money, quantitative easing, FOMC announcements, and more.
The Future of Monetary Policy (Credit Suisse, 2017)
This paper by Credit Suisse examines the major changes that central banks in developed markets have undergone since the global financial crisis. The paper concludes that the key issue for policymakers now is to determine the next steps monetary policy ought to take.
BNP Paribas Investment Outlook 2017: Beyond the shadow of quantitative easing
This paper by BNP Paribas Investment Partners discusses the new monetary policy landscape and the post-QE possibilities.
The party isn't over, but it's getting late: From monetary to fiscal policy (JP Morgan, Nov 2016)
Consensus is growing among policymakers and market participants that developed market (DM) monetary policy has reached an inflection point. This paper examines the likely next steps of the leading DM central banks.
Cost-benefit analysis of helicopter money (Richard Koo of Nomura, Aug 2016)
In this article, respected economist Richard Koo examines four different versions of "helicopter money" and analyses the possible implications of each.
Helicopter money: manna from heaven or poison pill? (Robeco, Dec 2016)
This paper by Robeco examines the case for and against helicopter money, a last resort given that the traditional measures for stimuating an economy have been exhausted.
The Stock Market as Monetary Policy Junkie: Quantifying the Fed’s Impact on the S&P 500 (James Montier, GMO)
One of the Fed's goals since the global crisis has been to raise asset prices. However, the transmission mechanism doesn’t appear to be lowering rates but rather, seems to come from the influence that the FOMC announcements have on the S&P 500.