Economics
Banque de France paper studies welfare cost of uncertainty
Banque de France working paper finds that the term structure of welfare costs ‘varies substantially, predictably and with a volatility that decreases with maturity’
SBP annual report highlights year of ‘critical’ changes
Governor highlights major amendments to the State Bank of Pakistan’s operations that are currently being considered by Parliament; accounts show rise in both profits and governor’s salary
Chile’s economy affected by commodities price shocks, says central bank governor
Commodity price shocks can 'be transmitted to the rest of the economy, even when countercyclical fiscal and monetary policies are in place', argues the Central Bank of Chile governor
Yellen ‘greatly’ concerned by inequality in US
Fed chair takes unusual step of addressing inequality in her speech at a Boston Fed conference; explores four ‘building blocks’ of economic opportunity
BIS paper tackles redistributive effects of regulation
Working paper studies how regulation tips welfare in favour of the real economy or financial sector, and suggests how regulators might deliver a Pareto improvement
Banque de France ‘significantly’ improves research output
External review of central bank research finds ‘significant rise in quantity and quality’ in past six years; suggests improvements in communication with policy-makers
European economists analyse global value chains
Bank of Portugal working paper analyses the global value chains in the eurozone and underlines the core role of Germany in production linkages
Sama’s Almubarak praises resilient banking system
Fahad Almubarak says central bank has helped create a healthy banking system in Saudi Arabia; banks well capitalised and implementing improved security technology
Finland paper: German minimum wage could be ‘too high’
Germany’s forthcoming minimum wage ‘could potentially be too high’ and lead to employment losses, especially in the east of the country, research finds
Lower outside demand and structural bottlenecks explain EM slowdown, IMF paper finds
Slowdown a ‘remarkable feature for a non-crisis period' in emerging economies that was largely unanticipated by scholars and forecasters, paper notes
State-owned banks played counter-cyclical role in EMs following financial crisis
Credit growth by foreign banks lagged behind that of domestic banks in Asia, Latin America and ‘emerging Europe', IMF working paper finds
Debt accumulation in advanced countries historically absorbed by increases in short-term foreign debt
IMF paper examines how composition of public debt answered to consolidation periods between 1900-2011; common pattern was broken during 1980s and 1990s
Brazil registers primary deficit for third consecutive month
Public sector primary deficit reaches 4.7 billion real ($2.10 billion) in July, making it more difficult to achieve annual fiscal target, notes central bank
Global financial system's future hinges on China's willingness to accept emerging India
India's emergence - and China's willingness to tolerate it - will be ‘test of survival' for the global financial system in the coming years, argues Deutsche Bank report
Capital lured to EMs by interest rate differentials, CBRT paper finds
Inflation and global liquidity other important drivers of international capital flows post-crisis, but countries' growth rates have less effect
Rajan urges ‘direct cash transfers' to poor people
RBI governor says transfer system would give the poor ‘choice and respect' and break the links between poor public service, patronage and corruption
IMF paper finds ‘robust' relationship between exchange rate flexibility and external adjustment
Using a data set of bilateral exchange rate regimes, study revives Milton Friedman's argument that a flexible rate facilitates external adjustment
Stanley Fischer upbeat on US productivity potential
Fed vice-chair says productivity cycles are ‘extremely difficult to predict'; emphasises possibility that productivity will continue to rise in line with historical average
Adjusted calculation of US employment-to-population ratio signals return to pre-crisis level
Atlanta Fed paper uses micro-data to account for individual characteristics and probability of labour force participation; finds ratio has regained pre-recession level of nearly 63%
Academics in charge make companies better off, Bank of Finland paper finds
Discussion paper finds that firms benefit from having academic directors, who are associated with improved acquisition performance and higher numbers of patents
Bank of Lithuania joins with country's oldest university to set up research centre
Collaboration aims at promoting ‘practical application' of scholarly undertakings; Bank chair notes criticism that Lithuanian economics is ‘detached from reality'
Growth to remain 'subdued' in Latin America in 2014, according to IMF regional outlook
Fund warns lower commodity prices, tighter external financing conditions, and domestic supply bottlenecks likely to offset 'positive impulse' from recovery in advanced countries
Finland's 'deep structural crisis' must be addressed, Liikanen warns
‘Decisive action’ is required to tackle a ‘deep structural crisis’, now that attention has shifted from problems in the eurozone, Liikanen writes in the Bank of Finland's 2013 annual report
Sri Lanka’s Cabraal challenges IMF ‘conventional wisdom’
Governor says IMF’s recommended remedy would not have worked in Sri Lanka; says recent recovery justifies the authorities’ chosen course of action