Research
ECB paper aims to quantify effect of ‘inertia' in reserve currency use
Researchers say dollar's position as the dominant reserve currency is not insurmountable - but force of habit plays a significant role
Israeli paper examines price-setting behaviour
Research finds that consumer prices in Israel are ‘moderately sticky’ and only change every 6 to 9 months; finds inflation expectations impact pricing behaviour more than actual inflation
Finland economist provides euro crisis ‘view from the north'
Banking union will be key to avoiding a repeat of the eurozone sovereign debt crisis, writes Bank of Finland economist; dealing with the ‘legacy' of weak balance sheets is a ‘key open issue'
RBNZ bulletin examines last crisis through ‘macro-prudential lens’
Article finds that a counter-cyclical capital buffer and changes to the core funding ratio could have been ‘usefully employed’ in 2004 to build financial sector resilience
Norges Bank economists examine motivations behind bank regulation
Staff memo sets out reasons why banking is ‘inherently unstable’ activity; says safety nets can create the need for further regulation
ECB paper considers how to conduct monetary policy without interest rates
Occasional paper studies development of Islamic finance in Europe, including the difficulties inherent in setting monetary policy given that sharia bans interest rates
Monetary policy links to financial stability ‘are not straightforward', says Fed paper
Research paper from Fed's Finance and Economics Discussion Series finds monetary policy and financial stability concerns can be complementary - but the connections are complex
Swedish paper finds benefit in increasing lag-length in VARs
Working paper says it is possible to estimate structural vector autoregressions with long lags and still obtain precise structural predictions
Bank of Italy paper finds women directors improve bank governance
Researchers find that women on bank boards tend to reduce the riskiness of investments, which they say is potentially both an argument for greater gender balance and a factor behind discrimination
Bank of Finland paper attempts to isolate European fiscal multipliers
Research seeks to account for effects of policy co-ordination and business cycles to produce more accurate estimates of European fiscal multipliers
IMF research quantifies distributional damage from fiscal consolidation
Working paper suggests efforts to cut budget deficits in advanced economies have raised inequality, cut the wage income share of GDP and pushed up long-term unemployment
ECB paper proposes model for assessing European sovereign and bank spillovers
Working paper uses VAR model to quantify interdependencies between bank and sovereign CDS spreads
Japanese paper finds income elasticity of money demand has fallen over time
Update to 1996 paper finds cross-sectional income elasticities of money demand have plunged since the 1980s, to below one in the late 2000s
Bank of Spain researchers find fiscal multiplier far greater in turbulent times
Researchers find recessions and banking stress amplify the effect of government spending on the economy – but also that the effect is severely tempered by weak public finances
Hungarian paper backs sticky price inflation indexes
Working paper analyses forecasting ability of different indicators of underlying inflation; finds sticky price indexes outperform more traditional core inflation measure
IMF paper weighs effect of shifting bank funding in eastern Europe
Researchers from the International Monetary Fund find banks rebalancing their funding sources away from foreign loans; warns global regulation may make this process too rapid
Survey finds Lithuanians lack opportunities to use payment cards
Survey respondents would like to pay by card at places that currently do not accept them - but paying through mobile phones is still beyond the pale
QE1 and QE2 operated in opposite directions, ECB researchers find
Researchers at the European Central Bank find that QE1 triggered a portfolio rebalancing out of EMEs into US equity and bonds, while QE2 acted in the opposite direction
ECB research dissects European competitiveness
Working paper separates competitiveness into political and factor price-driven elements; uses new index to show divergent outcomes across Europe
Colombian paper explains monetary policy transmission divergence across banks
Working paper says banks' size and capitalisation affects their sensitivity to monetary policy shocks and their ability to access alternative funding when core deposits in economy shrink
BoE research warns of self-fulfilling prophecy in 'speed-limit’ monetary policy
Working paper says targeting rates of change may not be as beneficial as some studies have suggested; could cause interest rates to become ‘pinned’ at the zero lower bound
National Bank of Belgium urges care in use of credit conditions surveys
Analysis shows eurozone’s Bank Lending Survey and Belgium’s Survey on Credit Conditions contain useful information – but ‘crucially’ depend on model specification
Riksbank paper looks at scrapping inflation target in favour of nominal GDP
Working paper concludes the inflation target should not be dropped, but only outperforms nominal GDP targeting when forward guidance is given
ECB’s LTROs had ‘favourable effect’ on sovereign yields
Dutch working paper evaluates the impact of the ECB’s unconventional monetary policy; says LTRO had beneficial short-term effect on government borrowing in most distressed eurozone countries