Research
World Bank report says going green makes economic sense
Authors tie employment, resources and productivity to environmental health
DNB calls for ‘structural solutions’ to varying eurozone inflation
Rebalancing effect of eurozone’s uniform monetary policy is “slow and incomplete”, central bank says
Study suggests AI is already leading to US job losses
Research by St Louis Fed says effect has been greatest in mathematical and computer sectors
Tariffs may lower the natural interest rate – research
Increased trade costs reduce demand for capital, say authors
BoE economists outline model of liquidity-solvency spirals
Model aims to test banks against the sort of interactions that led to collapse of SVB and Credit Suisse
NBER paper says geopolitical risk impacts consumer expectations
ECB survey questions help establish causal link between Russia-Ukraine war and spending plans
Teach people monetary policy to anchor expectations – ECB paper
Experiment run at ECB visitor centre finds strong impact from education
Yield spreads of bonds held by mutual funds decline in QE – ECB paper
Bond purchase programmes compress risk premia and boost demand, research finds
Ex-BIS research head backs tokenised deposits over stablecoins
Tokenisation is the “truly transformative innovation”, argue Cecchetti and Schoenholtz
Aging population may improve fiscal sustainability – paper
More old people means more money to invest in assets like government bonds, researchers point out
US consumer spending resilience hides inequalities – research
Low-income consumers’ credit card debt has risen substantially since 2019
Eurozone unemployment stats may understate slack – research
Authors say they have created an indicator with important monetary policy implications
Climate change harming global economy – BoK study
Study finds high income countries more vulnerable to climate change, in contrast to other research
Financial conditions help explain policy stance in Africa – IMF paper
Study says r* is not a sufficient guide to monetary policy when transmission mechanism is impaired
Uncertainty necessitates strong capital buffers – ECB
Central bank calls for increased attention to macro-pru and monetary policy complementarity
National debt will push up US interest rates – Dallas Fed research
Long-term rates could rise more than 1.5 percentage points over next 30 years, say authors
Low long-term real rates can increase inequality in US – study
Authors say low rates cause wealthy to invest more in their children’s education
ECB study finds banks window-dressing before stress tests
Lower-ranked lenders shifted risky assets ahead of 2021 and 2023 exercises
Politics influences US citizens’ inflation expectations – study
Party affiliations help explain divergence in different surveys’ results, say Cleveland Fed economists
Stablecoin growth may decrease loan supply in US – Fed study
Bank lending could be reduced by $325 billion over next three years, author claims
Weak productivity reduced output in Australia by up to 3% – study
RBA paper says decline has “profound implications” for citizens’ welfare
Investor sentiment now back at pre-tariff level – BIS study
However, authors warn that accommodative conditions could reverse at any time and trigger disruption
Investment funds procyclical to bond markets – ECB blog
Vehicles sell sovereign debt in times of stress while other investors step in to buy it