Research
IMF finds persistent debt overhang in Baltic countries
Fund study finds level debt overhang most pronounced in Estonia and Latvia
Italy: Basel II framework left banks defenceless against monetary policy shocks
Bank of Italy study shows higher capital requirements under Basel II did not guard against monetary policy shocks
Islamic finance poses challenges for central banks: Bank of Italy
Bank of Italy study says underdeveloped market for Islamic finance creates problems for central banks and regulators
IMF research finds new method to model asset prices
Fund study uses a logarithmic linear method to compute risk adjustments in asset price models
Michael Bordo: Fed failed as lender of last resort
Federal Reserve did not fulfil its role as lender of last resort
Eugene White: Fed supervision increased probability of crises
Fed’s increased role in banking supervision during the early part of the last century altered behaviour of banks and regulators
IMF: stricter ring-fencing creates greater incentive to build capital buffers
Fund study shows that policies to employ stricter ring-fencing on bank subsidiaries requires them to hold larger capital buffers
Finland finds limitations in China’s monetary policy
Bank of Finland study finds China’s monetary policy strongly influences asset prices but not household consumption
Namibia’s Shiimi: financial inclusion a high priority
Bank of Namibia governor Ipumbu Shiimi outlines plans to promote financial inclusion in Namibia
Kansas Fed on moral hazard in lending
Kansas City Federal Reserve study shows moral hazard poses greater threat to lending than adverse selection
IMF: deep structural problems hinder Italy’s recovery
Fund study says Italian economy unlikely to return to full capacity unless structural weaknesses are addressed
Temporary workers account for large part of labour reallocation costs: Bank of Canada
Bank of Canada study shows excluding temporary workers severely underestimates adjustment costs to labour
RBNZ: Australian economy strongly influences NZ dollar
Reserve Bank of New Zealand study finds evidence of large spillover effects from Australian economy on New Zealand dollar
IMF: post-Volcker monetary policy effective
Fund study find monetary policy has had just as much impact on output in the United States post-Volcker
CEPR: park cash in foreign assets to ease effects of foreign exchange windfall
Centre for Economic Policy Research says foreign exchange windfall can be absorbed by parking money in foreign assets
St Louis Fed says TAF announcement raised risk premiums
St Louis Federal Reserve study shows announcement of Fed’s Term Auction Facility unintentionally caused market participants to revise upward their expectations of seriousness of financial crisis
Bank on payment splitting
Bank of England study shows quantity of liquidity necessary to settle payment depends on threshold for payment splitting
BIS investigates drivers in US stock market
Bank for International Settlements study says changes in expected excess returns on dividends main driver of US stock market
RBI looks at crisis impact on central banks’ balance sheets
Reserve Bank of India study shows financial crisis led to dramatic change in composition of central bank balance sheets
Deflation caused by low growth expectations: BoJ paper
Bank of Japan study says deflation made worse by falling growth, inflation expectations
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