Research
Corporate debt supports macro liquidity
Bank of Canada looks at corporations’ debt-issuance strategies
Inflation costs: Philadephia Fed working paper
Philadelphia Fed paper examines cost of inflation in a DSGE model
Asset fire sales spread shock to emerging markets
A paper from the Centre for Economic Policy Research shows that financial shocks spread from developed to emerging economies through portfolio reallocations in the crisis
Optimal monetary policy with some pricing power
Boston Fed paper looks at optimal policy in an environment where firms can set some prices
Leverage and productivity in emerging European economies
A Centre for Economic Policy Research paper published in December argues that while moderate leverage increases growth, excess leverage can dampen it
Post-crisis bank behaviour: lessons from South America
International Monetary Fund paper uses data from banks in Mercosur trading bloc to investigate longer-term impact of turmoil on industry
A century of financial crises in New Zealand
Recent analysis from the Reserve Bank of New Zealand suggests that improvements in policy will reduce the risk of a currency crisis going forward
Housing cycles and the macroeconomy in the Middle East
International Monetary Fund paper calls for more research into the linkages between house prices and business, and an improvement to the range and precision of data
Leverage constraints: the Canadian experience
Bank of Canada paper shows that domestic banks fared better in the lead up to the crisis for having leverage ceilings; highlights some practical concerns
HK banks interdependent
Hong Kong Monetary Authority research says local banks as systemically important as international and mainland counterparts
Benefits and limitations of transparency
A Centre for Economic Policy Research paper argues that while increases in transparency yield significant benefit at low levels, diminishing returns set in at higher levels
"Lost Decade" in translation: what we learn from Japan
International Monetary Fund research asks what Japan’s Lost Decade could portend about recovery from Great Recession
BoJ discussion paper series – Dec 09
Bank of Japan finds e-money usage does not lower cash-demand
RBNZ - Reserve Bank Bulletin December 09
Reserve Bank of New Zealand report features articles on liquidity policy, forecasting, the history of banking crises and trade flows
IMF on Russia’s links with the rest of the CIS
Growth in other CIS countries closely associated with developments in Russia
Credit shocks: evidence from corporate spreads and defaults
Dallas Federal Reserve paper looks to uncover the nature of credit-market shocks
BoJ partly to blame for lost decade: CEPR paper
CEPR looks at the contribution of the stock of money to the macroeconomic outcomes of the 1990s http://www.cepr.org/pubs/new-dps/dplist.asp?dpno=7608
HKMA: Quarterly Bulletin (December 2009)
Bulletin article says exposures to structured products remains insignificant
Oil-price forecasts inaccurate
Bundesbank looks at the expectation-formation process of forecasters in the crude oil market
Cutting interest rates the best solution: ECB paper
A European Central Bank working paper argues that interest rate cuts and controlled inflation help adverse financial conditions, while simplistic interpretation of Taylor rule does not
Crisis down to global imbalances: Obstfeld, Rogoff
Maurice Obstfeld and Kenneth Rogoff say global imbalances key source of crisis
Biggest exit barriers political: Buiter
Willem Buiter says main obstacles to exiting unconventional policies
Fed does not respond to oil price shocks: CEPR paper
CEPR paper argues against the standard view that Fed’s policy responses to oil-price-led inflation caused economic instability
Central banks should have control over credit
Two economists argue in support of a role for credit in central banks’ mandate, and analyse the claim that financial crises are “credit booms gone wrong”