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Monetary Policy Independence and the Strength of the Global Financial Cycle

Staff working paper 2020-25 Christian Friedrich, Pierre Guérin, Danilo Leiva-Leon
We propose a new strength measure of the global financial cycle by estimating a regime-switching factor model on cross-border equity flows for 61 countries. We then assess how the strength of the global financial cycle affects monetary policy independence, which is defined as the response of central banks' policy interest rates to exogenous changes in inflation.
July 14, 2021

Press Conference: Monetary Policy Report – July 2021

Release of the Monetary Policy Report — Press conference by Governor Tiff Macklem (11:00 (ET) approx.).

July 12, 2023

Press Conference: Monetary Policy Report – July 2023

Release of the Monetary Policy Report — Press conference by Governor Tiff Macklem and Carolyn Rogers, Senior Deputy Governor (11:00 (ET) approx.).

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