In this paper we show that monetary policies aiming at inflation targeting could not unwind global imbalances in an orderly manner if the GDP level is at potential and growth rates equal potential rates in deficit countries. Instead, as long as output is below potential, easing monetary policies could result in bringing global imbalances to pre-crisis levels. This outcome depends on the state of domestic demand in surplus countries. In the particular case of constrained domestic demand in countries with excess savings, monetary policy easing could result in currency depreciation and, thus, in higher exports and even larger excess savings

Central banks need to change what they communicate, when they communicate, how they communicate and why they communicate…

To join the Eurozone a better functioning of this area has to blend with substantial real, structural economic convergence

Will Romania post a current account surplus in 2015? It is possible, but we do not know how likely. What we do know is that the occurrence of a current account surplus was much more likely before the VAT rate cut in June 2015…

Preserving financial stability is crucial and this mission hinges a lot on the health of the banking sector, on the effectiveness of macro-prudential tools…

In a world of low interest rates, central banks might have to promote the humble word to the rank of policy instrument…