Bank for International Settlements

Claire Jones

The European Central Bank has found itself caught in the crossfire of a battle raging between the world’s leading macroeconomists.

The Bank for International Settlements’ call last month for the world’s central bankers to hurry up and raise interest rates has reignited the debate over how to explain – and tackle – the financial and economic turmoil that has persisted over the past six years. 

Claire Jones

Our week ahead email helps you to track the most important events in central banking. To see all of our emails and alerts visit www.ft.com/nbe

More QE from the Bank?

The Bank of England‘s Monetary Policy Committee meets on Wednesday and Thursday, when the decision is due out at noon UK time (11am GMT).

Will the MPC vote for more QE? 

Claire Jones

Two of the three FOMC dissenters on Wednesday said why they broke ranks at last week’s meeting.

Aside from their view that the conditional commitment to keep rates on hold until 2013 looked suspiciously like the Fed was trying to buoy financial markets, there was another common strand to their discord.

Both Mr Fisher and Mr Plosser claimed monetary policy was limited in what it could do to spur growth. This is becoming a popular argument among senior central bankers.