Central Banks
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How central banks lose credibility – and why it matters
Central banks can lose credibility quickly when policy decisions are seen as politically driven. Evidence from Brazil shows that even a single ungrounded policy shift can unanchor inflation expectations and deteriorate inflation dynamics.
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How interest rate caps increased the provision of credit to firms in Bangladesh
A cap on corporate loan interest rates in Bangladesh led to an increase in lending–without rationing credit to riskier borrowers–indicating banks have substantial upfront market power. What are the implications for interest rate regulation in develop...
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Central banks to the rescue
Could central banks co-investing in private companies hold a possible solution to many developing government budgetary issues?