Research
Avoid too many rules on CoCo bonds: BoJ research
Bank of Japan paper says design of contingent capital instruments should not be overregulated; issuance should be encouraged owing to positive externalities
IMF: international business cycles are US-led
Fund study finds US financial shocks drive international business cycles
Bank of Canada: capital requirements dampen shocks
Bank of Canada study creates micro-model banking sector where capital requirements dampen real impacts of financial shocks
Philly Fed queries merits of payday loans
Philadelphia Federal Reserve study discusses costs and benefits of payday loans
IMF: tax hikes increase success of austerity measures
Fund study shows tax rises in addition to spending cuts help reduce public debts more effectively
IMF: Turkish banks vulnerable to monetary shocks
Fund study shows monetary policy channels in Turkey are severely disrupted when policy is tightened
Norges Bank finds strong oil krone link
Norges Bank study shows strong co-movement between oil prices, krone exchange rate and interest differentials can provide useful benchmark for measuring currency
CEPR finds bias in fiscal forecasting model
Centre for Economic Policy Research study shows that failure to incorporate changing preferences when modeling fiscal forecasts may create inaccurate predictions
Bank of Israel: FX intervention successful
Bank of Israel study shows rise in frequency of foreign currency interventions caused depreciation in shekel-dollar exchange rate
IMF: currency crises studies inaccurate
Fund research finds earlier studies on currency crises fail to identify volatile market fundamentals
IMF on luck and labour markets
Evidence from cricket shows a good first job has persistent positive impact on long-term career outcome, Fund study says
Firms have cut reliance on debt financing: RBA’s Battellino
Reserve Bank of Australia deputy governor Ric Battellino says businesses have raised equity and looked to their profits for funding
ECB: monetary policy could have prevented the crisis
European Central Bank study finds low benchmark rate had significant role in lax lending standards before crisis
BIS: interbank markets are hierarchical
Bank for International Settlements study finds evidence of tiered interbank market in Germany
T&T solves remittances anomaly
Central Bank of Trinidad and Tobago study explains drop in remittances to developing world
Bank of Canada: central banks prefer higher haircuts
Bank of Canada study shows haircuts on collateralised assets is greater when central banks cannot lend exclusively to illiquid institutions
St Louis Fed: forward rates provide investors little advantage
St Louis Federal Reserve study says informational value of longer term forward rates provides no additional economic benefits
Philly Fed: school failure insurance reduces dropout rates
Philadelphia Federal Reserve study says introduction of insurance against college failure risk could increase retention rate
RBA develops more robust monetary policy model
Reserve Bank of Australia study uses sign restriction VAR models to explain exchange rate puzzle in measuring monetary policy
Riksbank: inefficient labour markets distort growth
Riksbank study shows inefficiencies in output are related to the inefficient allocation of labour in the United States
IMF: Gulf bank balance sheets severely impaired by economic downturn
Fund study finds link between economic conditions in Gulf states and banks’ nonperforming loans in region
IMF: low income countries lack proper monetary policy framework
Fund study shows monetary transmission mechanism in low-income countries is less effective due to institutional deficiencies
Polish banking sector curbed growth in crisis
National Bank of Poland study shows banking sector played significant role in economic slowdown during financial crisis
ESRB big leap for Europe: Trichet
European Central Bank president Jean-Claude Trichet says launch of European Systemic Risk Board indicates significant progress in regulatory architecture