Research
Forex intervention unlikely to affect inflation expectations in the long-term, paper shows
Exchange rate intervention programmes in Chile in 2008 and 2011 had disparate effects on inflation expectations, according to new research by the country's central bank
LTROs ‘major' boost to eurozone liquidity, research shows
Paper explores the excess liquidity environment in the eurozone and examines market risk appetite, focusing on peripheral Europe
Hungarian paper breaks down components of finanical market indicators
Working paper presents a method for separating the global, regional and country-specific components in market indicators
Incomplete information can lessen the effect of shocks, paper finds
Australian research finds economic agents unable to tell how permanent a term of trade shock will be, but incomplete information means their reaction to shocks is more cautious
CEE business cycles still out of sync with eurozone, Polish paper finds
Despite some convergence, differences remain - particularly when it comes to agents' intra- and inter-temporal choices, which account for a large proportion of output fluctuation in the CEE region
Research investigates factors behind region-wide banking stability
New paper finds more competitive regional banking systems are less fragile; contagion is more dangerous when the host's banks are more liquid and better capitalised
Joint modelling of commodity and equity prices increases portfolio volatility
BIS paper investigates claims that investments in commodity-related products have led to increased price correlation with equities
Dutch paper quantifies impact of FOMC guidance on market rates
Working paper says Fed forward guidance lowered market interest rates up to seven years ahead; flattened yield curves in markets for US Treasuries and eurodollar futures
Collateralisation of borrowing may reduce bank resolution costs
This ‘net benefit' should result in lower overall funding costs and thus a lower probability of distress despite increasing encumbrance of the bank's balance sheet, according to a recent IMF paper
ECB paper says monetary transmission ‘far stronger’ in some eurozone countries than others
Interest rate changes have greater impact on bank lending in Germany and Italy than in countries with fewer commercial banks such as Spain and France
Richmond Fed paper examines sovereign debt duration
Working paper models trade-off between issuing shorter or longer-term debt; governments could be choosing the wrong durations by missing the ‘debt dilution’ problem
Czech paper examines interbank risk premium
Research finds counterparty and liquidity risk are ‘potentially significant determinants’ in the departure of interbank rates from key policy rates in Czech Republic
Polish economists call for dismantling of eurozone, and new role for ECB
Former Polish vice-minister of finance and bank chief economiss call for Germany to lead an exodus of the eurozone's strongest economies, to save the European Union
Eurozone core ‘regain net influence’ over bond markets, finds Irish paper
Technical paper examines spillovers in the eurozone’s sovereign debt markets; finds the impact of stressed countries on the wider region has diminished
‘Surplus' countries must act to help limit external imbalances, says BIS paper
BIS economist Philip Turner says external imbalances can threaten financial stability in creditor countries as well as in debtor countries; calls it ‘an important but unresolved issue of international monetary reform'
NY Fed study says shadow banks are here to stay
Study says shadow banks will play a significant part in the future of the United States’ financial system; higher capital standards on banks will lead to increase in shadow activity
IMF user guide takes stock of current toolkit for systemic risk monitoring
Paper provides guidance on selecting and interpreting monitoring tools; a continuously updated inventory of key categories of tools; and suggestions on how to carry out systemic risk monitoring
IMF ‘cookbook' paper outlines basic recipe for macro-pru policy
The paper provide new evidence on the effectiveness of different policy instruments using survey data
Bundesbank paper contrasts techniques for identifying monetary policy shocks
Discussion paper compares different methods for identifying monetary policy shocks; looks at use of VAR models and narrative time series
IMF paper highlights importance of macro-pru and monetary policy co-ordination
Researchers find that policymakers tend to use macro-prudential instruments more quickly ‘if the ability to conduct monetary policy is somehow constrained'
European credit growth strongly related to net debt inflows, ECB paper finds
Analysis indicates there is a strong international dimension to the determination of national credit growth rates
Richmond paper instructs ECB to buy government debt
Working paper argues the ECB already conducts fiscal policy through the allocation of its seigniorage revenues, and should ‘overcome’ its resistance to buying sovereign debt directly
BoJ paper examines consumer spending in low-interest rate environment
Research based on BoJ opinion survey finds that an individual with higher inflation expectations will tend to have increased their consumer spending when interest rates are at the zero lower bound
Crisis altered ‘traditional factor' impact on EM capital flows, new paper finds
According to the authors, the crisis ‘brought very important changes in terms of degree, size and volatility of capital flows to emerging markets'