Rose Cunningham is a Policy Advisor in the International Economic Analysis Department (IEA). In this capacity, she contributes to the Department’s analysis related to monetary policy and to the Bank’s participation in international meetings. Also, she conducts analysis and research on current economic issues and monetary policy more generally. Her primary research interests include business cycles, real-financial linkages and monetary policy frameworks. She holds a PhD in economics from Carleton University. Rose began her career at the Bank as a senior economist in the United States Division of IEA. Prior to becoming a Policy Advisor, she was a Director in the Department, managing divisions that forecast economic growth in Europe, China and other major overseas economies.
The size of China’s financial system raises the possibility that the liberalization of its capital account could have a large effect on the global financial system. This paper provides a counterfactual scenario analysis that estimates what the size and direction of China’s overseas portfolio investments would have been in 2015 if China had had no restrictions on these outflows.
In this paper, we analyze the presence of time variation in the pass-through from the nominal effective exchange rate to import prices for 24 advanced economies over the period 1995–2015. In line with earlier studies in the literature, we find substantial heterogeneity in the level of exchange rate pass-through across countries.
The 2007–09 global financial crisis has led policy-makers around the world, including central banks, to refocus their efforts to promote financial stability. As part of this process, central banks became quite active in supporting financial stability in a variety of ways, such as publicly sharing their assessments of financial system vulnerabilities and risks and helping to strengthen regulation, supervision and macroprudential measures.
Central banks may face challenges in achieving their price stability goals when financial stability risks are present. There is, however, considerable heterogeneity among central banks with respect to how they manage these potential trade-offs.