Research
Small businesses hit harder during recession: NY Fed
New York Federal Reserve study shows weak consumer demand for small firms’ products and services led to disproportionate decline for these firms
National Bank of Hungary paper assesses input distortions in CEE countries
National Bank of Hungary identifies labour and capital market distortions in central and eastern European countries
IMF paper on cyclicality of oil producers' expenditure
Fund study shows fiscal policy is pro-cyclical in low- and middle-income oil-producing countries, but counter-cyclical in high-income countries
Inflation expectations in euro area broadly stable: BIS paper
Bank for International Settlements study says long-term euro area inflation expectations have so far remained well-anchored during sovereign crisis
IMF paper builds financial conditions index
Fund study creates financial condition index to help predict growth patterns in Asian economies
Exogenous financial shocks should factor into monetary policy: Dallas Fed paper
Dallas Federal Reserve study says exogenous financial shocks should be incorporated into monetary policy decisions
Response to fiscal policy shocks can impact debt expectations: ECB paper
European Central Bank study says fiscal shocks not accompanied by an expected spending reversal increases debt burden and reduces economic activity
Hedging strategies in periods of financial stress: IMF paper
Fund study shows that hedging strategies can reduce volatility during volatile periods but not necessarily in tranquil times
Sovereign default risks amplify supply shocks: IMF paper
Fund study incorporates sovereign default risks into a general equilibrium model
Frequency of cyclical unemployment is rising: Fed paper
Federal Reserve study shows cyclical movements in unemployment have become more persistent in recent decades
Foreign exchange intervention less effective in open economies: IMF paper
Fund study shows the effects of foreign exchange intervention on currency is less effective the more open the economy
ECB paper highlights differences in EU real wage flexibility
European Central Bank study shows real wages are more flexible in Central and Eastern European economies than euro area countries
Policymakers can mitigate post-crises unemployment effects: Turkey’s Başçı
Central Bank of Turkey governor Erdem Başçı says declines in employment during crises can be reduced by introducing policies to ease firms’ borrowing costs
St Louis Fed paper on US monetary policy and global output gaps
St Louis Federal Reserve study says there is not sufficient empirical evidence to suggest US monetary policy should focus on global output gaps
Non-performing loans pose severe risk to advanced economies: IMF paper
Fund study finds evidence of strong link between level of non-performing loans and macroeconomic activity in advanced economies
Iceland paper reviews monetary policy in turbulent times
Central Bank of Iceland study shows banks’ price setting behaviour and inflation expectations have been negatively impacted by banking crisis
IMF paper on leaning against the wind in Latin America
Fund study says countercyclical instruments are an effective tool to restrain excessive credit growth in Latin American countries
LOLR creates incentive for banks to over-leverage: Netherlands Bank paper
A Netherlands Bank study finds central banks’ lender-of-last-resort function motivates banks to take on excessive risk
Israeli housing bubble in early stages: Bank of Israel paper
Bank of Israel study shows house price increases in Israel are not exceptionally high relative to past episodes
Expansionary effects of fiscal contractions overstated: IMF paper
Fund study finds bias in literature towards expansionary effects on fiscal contractions
Standard monetary policy rules don’t apply in liquidity traps: Dallas Fed
Dallas Federal Reserve study shows monetary policy should be complemented with fiscal policy in order to shift aggregate demand out of a liquidity trap
Costs to bank funding not fully passed on to markets: Norges Bank paper
Norges Bank study finds evidence of incomplete pass-through of banks’ funding costs on deposit rates in Norway
Islamic banks' return on deposits comove with conventional banks: IMF paper
Fund study says returns on deposits of Islamic banks in Turkey and Malaysia exhibit similar trends to conventional banks
NY Fed paper identifies labour slack threshold
New York Federal Reserve study says relationship between labour market slack and inflation is non-linear