Research
Riksbank paper examines dynamics of foreign funding by Swedish banks
Study finds currency hedging needs of institutions and companies incentivise Swedish banks to issue securities in foreign currency
Slovakian economists build new framework for estimating output gap
Researchers combine a variety of methods and information sets to ‘substantially reduce’ the uncertainty of output gap estimates on a ‘policy-relevant’ horizon
Target2 'filled in' balance of payments gaps during euro crisis, NY Fed paper finds
Federal Reserve Bank of New York study finds adjustment to the pullback of private capital during the euro crisis made less harsh by Target2
ECB paper studies imbalances in major eurozone countries
Use of a new multi-country model demonstrates stimulus effects on aggregate demand from changes in interest rates at ECB-level 'are present but not overly large'
Czech paper deconstructs exchange rate variability in advanced economies
Researchers find that economic fundamentals are only responsible for a third of the medium-term exchange rate variability, although this increases when the euro is involved
Banks switch strategies way ahead of new regulation, paper finds
ECB working paper studying a set of Finnish banks finds they anticipated Basel II by up to seven years, shifting their credit portfolios in preparation for the new regulatory environment
Nature of shock explains linkages between monetary and macro-pru policies
Riksbank article studies linkages in a dynamic general equilibrium model, where macro-prudential policy is exemplified by a countercyclical capital buffer
Redistribution can boost demand but cut output, warns Fed working paper
Richmond Fed working paper points out that although taking from the rich to give to the poor can boost aggregate demand, it may also disincentivise work
Credit-strapped Canadians continued to consume in wake of crisis
Lending supply effect ensured households compensated for scarce credit by drawing down liquid assets instead, according to Bank of Canada research paper
Forward guidance ‘escape clause' increases effectiveness, says Colombian paper
Incorporating a threshold into forward guidance means central banks can change course when economic conditions dictate - meaning it is welfare-improving
Belgian paper presents new productivity indicators
Researchers from across Europe attempt to tackle the difficulty of comparing firm-level data across the continent by creating a new database of productivity indicators for Europe
Asia weathered crisis better thanks to lessons of the '90s
The Asian financial crisis of the late 1990s led the countries affected to implement policies that stood them in good stead for the global crisis of the past few years
Greek paper raises ‘red flag’ over Emu integration
Researcher from Bank of Greece analyses the impact of the Economic and Monetary Union on financial market integration by assessing its effect on capital holdings
Devaluation would not hit Albanian short-run trade balance, research suggests
Evaluation of Albanian trade with its biggest trading partners finds little evidence of the deterioration in trade balance suggested by the ‘J-curve' hypothesis
IMF statisticians create composite index of financial inclusion
A working paper outlines the design of the index and then applies it to a sample of 31 countries; Maldives comes out on top while Chad gets the wooden spoon
Wages more sticky in the US than in Japan, BoJ paper finds
The empirical fit of the New Keynesian Wage Phillips Curve is generally superior for Japan, auhors note; inflation indexation plays a key role in the US, but is less important in Japan, they add
Finnish paper finds forecast errors correlate with subjective uncertainty, not 'disagreement'
Paper analyses forecasts in the ECB's Survey of Professional Forecasters and the US Survey of Professional Forecasters to find the best predictor of errors
Policy must do more to get women and low-skilled into work, paper finds
Slovak economists analyse the elasticity of labour supply and find that changes in the tax and benefits system could entice women in particular into the workforce
Sepa obstacles have 'not evaporated completely’, warns Finland paper
Bank of Finland researcher finds the advent of the Single Euro Payments Area has not removed all of the barriers to ‘a true domestic products and services market’
Forex loans helped Hungarian firms invest more - until the forint fell in the ‘great recession'
Working paper finds Hungarian firms that borrowed in foreign currencies invested more before the crisis, but experienced a negative balance sheet effect thereafter
Study finds support for Reserve Bank of Fiji's targeting of overnight policy rate
Working paper uses quarterly data for a 10-year period, 'comprehensively estimating all potential money demand equations within the ambit of monetary policy'
Price-setters still expect Sarb to miss inflation target
The South African Reserve Bank has succeeded in persuading analysts it will keep inflation within its target band, but price-setters' expectations remain higher
Home repossession rules explain Europe's divergent debt profiles, paper finds
Discussion paper published by the Deutsche Bundesbank says differences in legal processes explain the ‘striking differences’ in debt profiles of each eurozone country
ECB paper tests resilience of Polish economy to interest rate shocks
Researchers find that output and prices in Poland have become more resilient to both interest rate and exchange rate shocks over the past two decades