Research
NY Fed paper discusses budget deficit impact on output
Federal Reserve Bank of New York staff paper finds running budget deficits can be either expansionary or contractionary for output, depending on how deficits interact with expectations about the long run
IMF offers fresh perspective on stress testing
International Monetary Fund researchers investigate stress testing in interconnected banking systems
IMF paper investigates valuation impacts of geographic diversification
Paper finds shareholders are less able to monitor firm executives in diverse bank holding companies; allows corporate insiders to extract larger private benefits
World Cup linked to declining trade volumes, says ECB paper
European Central Bank study shows distraction created by sporting event explains changes in volume of trades executed in financial markets during playing hours
IMF paper explores importance of systemic emerging markets
Research paper finds differing results for impacts of trading partners' growth on low-income countries that are predominantly commodity exporters and those that are not
Boston Fed investigates effects of credit scores on payment choice
Discussion paper finds evidence to back anecdotes that debit card use is negatively impacted by poor credit scores
Japanese public offers opinions on economic conditions
Bank of Japan publishes results from most recent public opinion survey; many expect to see economic conditions worsen in next 12 months
Overburdensome regulation can generate shadow activities, says IMF paper
Fund study says institutions have a larger influence on the size of the underground economy than on tax rates
Stock markets react strongly to news about Greek bailouts, says Netherlands Bank paper
Netherlands Bank study says news about Greek bailouts rather than Greek fundamentals have a significant effect on bank stock prices
Investors were ‘fooled by search’ in US housing, says Bank of Canada paper
Bank of Canada study says search frictions in the housing market contributed significantly to the housing bubble in the US over a decade
IMF paper captures spillover effects from tougher capital rules
Fund study shows international spillover effect from higher capital requirements typically account for 20-25% of the total impact on output
Emerging markets benefited from solid balance sheets, says BIS paper
Bank for International Settlements study says Latin American and Asian countries experienced more sustainable levels of credit growth due to healthy balance sheets pre-crisis
Rapid credit growth in Asia driven by domestic factors, says IMF paper
International Monetary Fund study says domestic monetary policy can play a pivotal role in managing credit growth in emerging Asian markets
Heightened uncertainty promoted precautionary savings post-crisis, says IMF paper
Fund study says precautionary motives promoted households in advanced economies to significantly increase savings following the global financial crisis
IMF paper finds inflexible exchange rate regimes most exposed to hot money
Fund study says relatively inflexible exchange rate regimes need to be counteracted by carefully designed macroprudential policies
High borrowing costs discourage Eastern European firms from tapping banks, says ECB paper
European Central Bank study says many firms in Eastern Europe are put off by the high interest rates charged by foreign banks for a loan
Inflation-targeting central banks should be dissuaded from dual mandate, says St Louis Fed paper
St Louis Federal Reserve study says how Federal Reserve should respond to aggregate supply shocks is unclear if it is to pursue inflation targeting under a dual mandate
ECB paper captures effect of eurozone sovereign risk on bond spreads
European Central Bank study says both country-specific and contagion risk contributed to widening of sovereign bond spreads against the German Bund during the financial crisis
Central Bank of Iceland paper highlights limitations of inflation indexed bonds
Central Bank of Iceland study shows inflation index-linked bonds in US, UK and Iceland are unreliable measures of the real interest rate
ECB paper finds evidence in support of exchange rate scapegoat theory
European Central Bank study shows expectations of frequent changes to structural parameters explains instability in the relationship between exchange rates and fundamentals
Bargaining power in Swiss repo market more pronounced during crisis, says SNB paper
Swiss National Bank study shows the central bank was able to negotiate a significantly higher price with banks for repurchase agreements during the financial turmoil
Treasury bills are superior liquidity instruments, says IMF paper
Fund study says Treasury bills are more secure than central bank bills in performing debt and liquidity management functions
Germany highly exposed to US and European contagion effects, says Buba paper
Bundesbank study finds strong contagious effects from the US and Europe, but no effects from the Asia-Pacific region and emerging markets on the German financial system
BoJ paper incorporates financial sector into macro-model
Bank of Japan study builds a financial sector model in which bank credits are influenced by credit costs, the capital adequacy ratio and other considerations