Research
Central bank auctions reveal banks' liquidity risks
BIS study says aggressive bidding in central bank auctions good indication of liquidity risks at banks
Bank of Canada: Chinese shocks have global bearing
Bank of Canada study shows China’s monetary policy is less effective at weathering shocks and country must be incorporated in global models
IMF: Liberalisation of trade can curb Iraqi inflation
IMF study finds mounting inflation in Iraq arising from oil monopolists can be lessened through open market policies
SNB: Firms factor in effort when determining wages
Swiss National Bank study shows workers derive a psychological benefit from reciprocating a generous wage offer by the firm with harder work
NY Fed: Shadow banks should not be kept in the dark
New York Federal Reserve study says permanent access to funding facilities for shadow banks should be considered following credit market strains
Don’t trust the bloggers on economics: Fed economist
Richmond Federal Reserve’s Kartik Athreya says “extremely low likelihood” that writers who have not taken a year of PhD coursework in a decent economics department can advance the discussion on economics
Taking the credit in eastern Europe
Need for credit higher in eastern, than western, Europe, Swiss National Bank research finds
BIS: currency collapses benefit output growth
Bank for International Settlements study on currency collapses finds devaluation helps growth in the long run, rather than dampening it
RBA: standard Phillips curve better measure of inflation than New Keynesian version
Reserve Bank of Australia study finds traditional Phillips curve model outperforms New Keynesian version in measuring inflation
RBA: Australia’s employment boom had no impact on joblessness
Reserve Bank of Australia study finds labour growth in the past decade served those outside labour force, but not unemployed skilled workers
Central Bank of Brazil: inflation tax risked hyperinflation
Brazilian central bank study shows the country risked weak hyperinflation in the past due to high income tax elasticity
Cleveland Fed: Fed’s abandonment of FX controls justified
Cleveland Federal Reserve study says Fed was right to stop intervening in foreign exchange markets as it helped stabilise prices in long term
St Louis Fed: FOMC largely ignored Phillips curve framework
A St Louis Federal Reserve study on Fed transcripts shows the FOMC was split on whether to use the Philips curve in monetary policy decisions
San Francisco Fed: jobs growth policies only temporarily effective
San Francisco Fed study shows recent government policies designed to stimulate employment failed to have any long-lasting effects
IMF: FDI undermined competitiveness in central and eastern Europe
An IMF study on real effective exchange rates reveals large volumes of foreign capital flows reduced competitiveness in central and eastern and European countries
Terms of credit in a competitive market: Philly Fed research
Paper from the Philadelphia Federal Reserve constructs a model to explain behaviour of lenders and borrowers
Expectations drive house prices
Bank of Spain research finds expectations on both monetary policy and future productivity influence house prices
Big banks get better borrowing rates: Norges Bank
Research from the Norwegian central bank finds that systemically important lenders get more favourable terms on the interbank markets, partly due to lower perceived credit risk
Determinants of big banks’ credit default risk: IMF paper
Fund research finds factors that determine credit default risk for systemically important institutions are consistent with earlier literature on bank failures; business models, earning potential, economic uncertainty all play a part
United States vs the euro area
Bank of Spain research examines where monetary policy has the greater real impact
Boston Fed on expectations, output and inflation
Research from Boston Federal Reserve shows low marginal cost presses down on inflation even when central bank’s explicit inflation target is clearly communicated and understood
Monetary policy analysis and forecasting in the G20
Paper published by the IMF develops model featuring extensive linkages between real and financial sectors
IMF: reserve managers’ ‘procyclical’ strategies exacerbated crisis
IMF says behaviour of reserve managers compounded pressures on financial stability; highlights potential conflict between investment strategies and stability mandates
Money and liquidity in financial markets
Connection between interbank market for liquidity and broader financial markets exists