Research
The state of the art of inflation targeting
The Bank of England's Centre for Central Banking Studies has published a new handbook showing the key features of the inflation-targeting frameworks in each of the 26 inflation - targeting central banks around the world.
Iceland shows need for pan-EU supervisory approach
The Icelandic experience in the current crisis shows that the European Union's (EU) arrangements for cross-border banking supervision and deposit insurance need urgent strengthening, a new paper from Robert Wade, a professor of political economy at the…
Europe's banking fragility needs urgent attention
Europe's banks are so fragile that measures must be implemented within the next 12 months, a paper by Adam Posen and Nicolas Veron, two economists at the Peterson Institute for International Economics, posits.
Reserves good insurance for emerging markets
Accumulating foreign-exchange reserves remains "pretty good insurance" for emerging markets, new research from Deutsche Bank posits.
US output gap may be smaller than thought
That core inflation has fallen relatively little indicates that there is less slack in the American economy, and thus a smaller output gap, than standard estimates predict, research published by the San Francisco Federal Reserve posits.
On macrofinance and monetary policy
The National Bank of Denmark has published a thesis exploring some of the theoretical and empirical aspects of monetary policy and macrofinance.
Measuring financial stability
Difficulties in measuring financial stability should not delay the implementation of an operational framework, research published by the Bank for International Settlements (BIS) argues.
On how credit ratings are used
A report by the Joint Forum has uncovered several trends in the use of credit ratings by the official sector.
The equity premium and the volatility spread
The spread between historical and risk-neutral volatilities is seen as a function of the risk premium and of skewness by researchers at the Bank of Canada.
Trade spillovers hit Baltics most
Trade channels dominate the transmission of cross-border spillovers to the Baltic States, a new paper from the International Monetary Fund reveals.
Efficient payment systems boost intermediation
Efficient payment systems increase financial intermediation and the availability of credit, new research from the Bank of England posits.
Inflation-targeting central banks communicate more
Central banks operating under inflation-targeting frameworks tend to provide more information than entities operating under other frameworks, a new paper from the Bank for International Settlements reveals.
Chaps can cope with payments outages
If a financial institution is unable to make - but able to receive - payments, Chaps, the UK's large-value payment system, will ensure that settlement banks stop making payments to the institution, reducing systemic risk, new research from the Bank of…
Generalised Taylor rule holds
The generalised Taylor principle is alive and well, new research from the Kansas City Federal Reserve posits.
Dornbusch was right
Dornbusch's exchange rate overshooting hypothesis holds, new research from the Norges Bank reveals.
Price-level targeting better than IT
Moving to price-level targeting from inflation targeting is welfare enhancing when imperfect credibility is short-lived, a new paper from the Bank of Canada posits.
Institutions matter in financial development
The gap in financial development between the countries of the CFA franc zone and the rest of Sub-Saharan Africa can be explained by differences in institutional quality, new research from the International Monetary Fund reveals.
Consumption related to the state of the economy
Consumption is proportional to a target wealth with the marginal propensity to consume depending on the state of the macroeconomy, new research from the St Louis Federal Reserve reveals.
Fed's governance structure should be revisited
The conventional model of central bank independence may need to be revisited given the unprecedented expansion of the Federal Reserve's balance sheet, new research from the International Monetary Fund notes.
Southern and Western US districts to thrive
Southern and Western Federal Reserve districts will show the strongest growth in the post-crisis expansion, new research from the Kansas City Fed posits.
Markets discipline governments
Markets are exerting pressure on governments to improve the state of public finances and restore competitiveness, a new paper from the International Monetary Fund reveals.
CDS auctions improve settlement efficiency
Credit default swap (CDS) auctions have the potential to enhance the efficiency of settlement, new research from the New York Federal Reserve reveals.
Labour models with best fit
Labour models with wage stickiness and right-to-manage bargaining or with firm-specific labour deliver the best fit, a new paper from the European Central Bank posits.
Bank of Canada - Spring Review
The Spring issue of the Bank of Canada Review considers changes to the country's inflation-targeting framework.