Research
Some grim reading for bankers
A paper published by the European Central Bank has found the interdependence of lending decisions by national subsidiaries of global banks can lead to contagion.
Liquidity and the lender of last resort
A Banque de France research paper has found that a relatively small liquidity shock can disrupt markets, which means the probability of default for leveraged investors is higher than standard risk measures suggest.
BIS paper on house prices in emerging Europe
This BIS working paper examines the determinants of house price increases in central and eastern Europe.
EMU has led to increased stability and convergence
Monetary union has led to increased stability and convergence of financial markets in euro area, a new paper from the CEPR finds.
Links between ownership, market structure and risk
The relationship in developing countries between banks' risk of failure, market structure, their ownership, and screening and bankruptcy costs is investigated in an International Monetary Fund paper published on Wednesday.
The effect of expansion on EU inflation rules
The Bank of Estonia has published a paper that examines the impact of the expansion of the EU on the Maastricht inflation criterion.
Rate signals and CB transparency
Interest rates should be added to the list of signals that central banks can reveal in order to be transparent, according to a paper published by the Centre for Economic Policy Research.
A case for hedge fund regulation
The unique nature of hedge funds could lead to market failures that counterparty credit risk management (CCRM) practices cannot easily assess, according to an article published by the New York Federal Reserve.
Fed's Beige Book published
"Outside of real estate, reports that the turmoil in financial markets had affected economic activity during the survey period were limited," the Fed said in its latest "Beige Book" on economic conditions, featuring reports from the 12 regional Fed…
Globalisation's impact on UK inflation
The author of this paper uses the International Monetary Fund's new Global Economy Model (GEM) to estimate the importance of various factors, which are used to explain the differences in the trends in core inflation and relative prices in the UK, the…
ECB rate setting analysed
This paper, published by the Institute for Monetary and Financial Stability, uses the ordered-probit technique and variables noted in the European Central Bank's (ECB's) Monthly Bulletin to investigate how the central bank sets rates.
Aging, demand and the structure of wages
Substantial shifts in the age distribution of the working population are being brought about by demographic change.
Algeria's unemployment relatively high
This paper considers the determinants of labour market performance in Algeria.
Fed Board's Mishkin writes on housing crisis
In a timely paper, Frederic Mishkin, one of five current members of the Federal Reserve's Board of Governors, has emphasised the importance of the housing industry on the US economy. Mishkin said: "The housing market is of central concern to monetary…
IMES series covers Asian economic trends
The Institute for Monetary and Economic Studies at the Bank of Japan has published a discussion paper e-series covering a host of topical Asian issues.
Notes on surviving illiquidity
The Cleveland Federal Reserve Board has published a paper that examines crashes and recoveries in illiquid markets.
Japan's low rates explained
Japan's low long-term interest rates can be explained with economic rationality, according to a paper published by the Bank of Japan on Wednesday.
Problems with monetary policy transmission lags
A paper published by the Bank of Finland investigates how lags in monetary policy transmission can damage the credibility of inflation-targeting central bankers.
Securitisation led to subprime growth
The introduction of automated underwriting and securitisation caused the US subprime loans market to expand, according to two International Monetary Fund (IMF) researchers.
The emergence of principles-based policy
The Swiss National Bank has published a paper reviewing what it describes as the success of its principles-based approach to monetary policy.
The impact of contagion on interbank markets
The Bank for International Settlements has published a paper on using counterfactual simulations to assess the danger of contagion in interbank markets.
Australia investigates resilience
The Reserve Bank of Australia has published a series of draft papers presented at its conference on the structure and resilience of the financial system, which took place on 20 and 21 August.
Paper on the new Keynesian Phillips curve
The Richmond Federal Reserve Paper, Inflation dynamics of the new Keynesian Phillips curve, derives the log-linear approximation of the inflation dynamics in the Calvo-model when the average inflation rate is positive.
Measuring exchange rates in poor countries
This International Monetary Fund paper examines the difficulties in determining the real exchange rate in low-income countries.