Research
BoE paper highlights ‘cost-of-carry’ channel of monetary policy
High inventory levels can boost transmission, authors say
CBDC technical design has little impact on demand – BoK study
Working paper also finds that interest-bearing retail instruments attract more interest
Advanced economies’ debts are ‘unsustainable’ – research
US, Japan and European nations need to get their fiscal act together, says study by Belgian central bank
CBDC or fast payments can break up ‘walled gardens’ – BIS paper
Study of ‘competing digital monies’ finds public system could prevent fragmentation and rent-seeking
Poorer areas in US have higher food inflation – research
Low-income areas also have less disinflation after shocks pass, Atlanta Fed study finds
Support for euro hits ‘record highs’ – ECB
Previously sceptical countries have grown to like shared currency, research suggests
Climate risks still underplayed in credit ratings – ECB blog
Sovereign bonds, utilities and automotive and insurance sector securities most impacted by climate
Tariffs not increasing activity or jobs in US manufacturing – study
Labour supply constraints and increased input costs are holding sector back, say Fed researchers
BoE paper explores redistribution from macro-pru tools
Evidence suggests there are stability benefits but also costs from using borrower-based tools
Central banks speak opaquely to avoid overreaction – ECB study
Authors say institutions tend to communicate more clearly when they know their reputations are low
AI models ‘know more than they say’ – BoE paper
Tapping into ‘hidden states’ of large language models can improve data processing, authors claim
Emerging market central banks should be hawkish – NBER paper
Stronger reactions to inflation surges help to build institutions’ reputations, researchers argue
Firms slow to adjust investment targets for inflation – BoJ study
Discount rates are sticky and do not rise with expected increases in price levels, research finds
Researchers revisit 20-year forecast for global monetary system
Eichengreen and Razo-Garcia predict further move towards polarised exchange rate regimes
Stablecoins to trigger rise in demand for Treasuries – study
Authors say sector’s growth could take demand from around $300bn today to $2trn by 2030
Swiss price controls do not depress inflation – SNB paper
CPI metric would ‘not have greatly differed’ had it excluded price-controlled goods, study finds
NBER paper maps out international financial network
Rey and Stavrakeva show equities markets play crucial transmission role
Trade fragmentation not always inflationary – BoE study
Tariffs influence prices based on how sudden the shock is and how demand adjusts, researchers say
Stablecoin rules should extend beyond issuers – FSI report
Some platforms offer yield-bearing products based on digital assets, latest brief points out
US long-term unemployment uptick worries researchers
Minneapolis Fed authors point to ‘large and consequential trend’ upwards
Fed researcher makes case for liquidity support for non-banks
Central clearing, liquidity regulations and balance sheet policies may be key, says author
Career concerns can lead to better FOMC voting – NBER paper
Study examines range of biases among Fed decision-makers
Machine-to-machine could be future of payments – study
Existing 402 web protocol, coupled with AI, could enable frictionless transactions, says author
US inflation regime persistently above target now – Fed economist
Price rises are broad-based and have significantly impacted expectations says researcher