Research
Fiscal stabilisation policy is redundant, says Bullard
St Louis Federal Reserve study says fiscal policy is ill-suited as a stabilisation policy and that monetary policy, even at the zero bound, is a more effective tool
Fiscal sustainability indicators have limited effect on CDS spreads, says IMF paper
Fund study shows sovereign credit default swap spreads are driven largely by short-term liquidity conditions and large-scale long-term bond purchases by major central banks
US housing prices strongly influenced by news, says Bank of Portugal paper
Bank of Portugal study says news shocks explain sizable fraction of variation in house prices and housing investment in the US over the past four decades
Credit rating agencies pose stability risks, says IMF paper
Fund study shows opinions of rating agencies can influence financial stability through impact on sovereign funding costs
Governments can safeguard economy against supply shocks, says National Bank of Denmark paper
National Bank of Denmark study says financial system structures and government support are important factors in shielding the economy from supply shocks
Output volatility rises with firing costs, says Central Bank of Peru paper
Central Bank of Peru study shows reducing firing costs in emerging markets to level consistent with developed nations can lower output volatility by 15%
IMF paper on optimal monetary policy frameworks under price distortions
Fund study shows sectoral inflation targeting and output gap stabilisation outperform strict headline inflation targeting in the presence of subsidised prices for goods
Macro-stress tests not suitable as early warning systems, says BIS paper
Bank for International Settlements study says macro-stress tests are ineffective tools for identifying vulnerabilities in the financial sector during tranquil times, and could even mislead supervisors
Central banks' financing of governments warranted in some cases, says IMF paper
Fund study outlines appropriate framework to enable central banks in developing countries to lend to governments in the short-term
Quasi-fiscal policies pose inflationary risks, warns IMF paper
Fund study says quantitative easing can lead to excessive inflation if fiscal authorities do not fully back operations to expand central banks' balance sheets
ECB paper identifies substantial shift in invoicing patterns following euro adoption
European Central Bank study shows Norway's trading partners participating in the eurozone used their own currency more frequently than before the introduction of the euro
Belgium central bank paper reviews effects of trade liberalisation in low-wage countries
National Bank of Belgium study shows low-wage countries experience less movement in labour and output to high-skill-intensity industries as a result of trade liberalisation policies
Fed paper models financial stress index
US Federal Reserve study discusses several factors that should be considered when building financial stress indexes
BoJ report warns of pause in economic activity
Bank of Japan’s Regional Economic Report for January 2012 shows signs that pace of economic growth is moderating
CNB paper models domestic bank liquidity stress tests
Czech National Bank study shows the Czech banking system is resilient to stressed scenarios mimicking the 2008 and 2009 international liquidity crisis
Order flows are strong indicator of forex movement: Norges Bank paper
Norges Bank study shows order flows in Asian and Australasian countries are a strong indicator of potential exchange rate movements
Bank of Spain paper identifies no regulatory bias in telecoms market
Bank of Spain study finds no evidence of a bias towards rural consumers in US residential local telephone market
IMF paper measures the natural rate of interest
Fund study says the transformed money demand and observed output gap provides the best information about the natural interest rate
BIS paper reviews Japan’s attempts to internationalise the yen
Bank for International Settlements study says policy to internationalise the yen in the mid-1980s helped liberalise the country’s economy
Bank of Portugal paper studies public-private sector wage gaps
Bank of Portugal study finds public-sector wage premium in Portugal, Ireland, Greece and Spain were higher than euro area average
Counterparty risks distort insurance protection, says ECB paper
European Central Bank study shows that although hedging aims at sharing risk, it can also lead to risk-taking distortions due to the interplay of counterparty risks
Japan’s QE supported economic activity, says IMF paper
Fund study shows monetary policy transmission mechanism in Japan may have strengthened due to improvements in the banking sector and deleveraging in the corporate sector
Bundesbank paper captures dampening impact of bank lending
Bundesbank study shows one-third negative loan development during fallout of the financial crisis was due to purely bank-related factors
Norges Bank paper on central bank independence in the post-war era
Norges Bank case study shows central banks in the UK and Sweden had a higher degree of operational independence than Norway, despite its legal autonomy from government