Research
Relationships help for IPO performance
Investors prefer initial public offerings (IPOs) managed by relationship banks than similar ones managed by outside banks, according to research by the Chicago Federal Reserve.
Do trade costs explain macroeconomic puzzles?
Research published by the Reserve Bank of Australia finds some evidence that trade costs do, at least in part, explain three monetary policy puzzles; the purchasing power parity real exchange rate persistence puzzle, the Feldstein-Horioka saving…
Can rainy-day funds make a difference in Europe?
The Bank of Italy has published a paper looking at whether rainy-day funds, which US states (who usually have to balance their budgets) use to limit procyclical fiscal policies, have a role to play in European fiscal policy.
Differing results on investment adjustment costs
A Bank of England paper evaluating the costs of changes in investment shows the elasticity of investment with respect to the shadow price of capital (the value to the firm of one additional unit of capital) to be 15 times larger than aggregate models…
Instability fundamentals have weathered revolution
The financial fundamentals that hold the key to the dynamics of instability remain despite three decades-worth of structural change in the system, according to research published by the Bank for International Settlements.
Hong Kong benefits from mainland growth
Hong Kong's status as an international financial centre will be enhanced by the rise of mainland China, according to research published by the Hong Kong Monetary Authority.
Cash costs more than cards in Sweden
Debit and credit card payments have a lower social cost than cash transactions for purchases of more than €8 and €18 respectively, research published by the Riksbank has found.
SWF growth necessitates political action
Governments must formulate policy on sovereign wealth funds because the amount of state assets under management is likely to shoot up in coming years.
US asks if it is losing its productivity advantage
Strong labour productivity growth in China and India may force some US firms out of business, but will also benefit the world's largest economy.
HK market structure has little impact on profit
Cost efficiency is significantly more important than market structure in determining the profitability of banks in Hong Kong, according to research published by the Hong Kong Monetary Authority (HKMA).
Interest rates and the economy: the best models
Analysis conducted by the Bank of Canada of six models looking at the relationship between the term structure of interest rates and the macroeconomy, found those following Diebold and Li's work performed the best.
Slovenia's capital failure
The poor performance of Slovenia's capital markets illustrates the difficulties in developing capital markets in small emerging economies, according to a paper published by the International Monetary Fund.
A beginner's guide to the Phillips Curve
The Richmond branch of the Federal Reserve has published an introduction to the Phillips curve, a graph which underpins the relationship between unemployment and inflation.
Exchange rates' adjustments in booms and busts
The European Central Bank has published a study looking at the relationship between boom-bust episodes in asset prices over the past two decades and exchange rates.
Survey reveals borrowing woes for UK firms
UK businesses will struggle to borrow in the coming months but households will find banks still willing to lend, according to the Bank of England's latest credit conditions survey, published on Wednesday.
Research finds East Asian ratings discrepancy
A significant discrepancy exists between agency ratings and market-based default risk measures for East Asian banks, according to a paper published by the Hong Kong Monetary Authority on Tuesday.
Some grim reading for bankers
A paper published by the European Central Bank has found the interdependence of lending decisions by national subsidiaries of global banks can lead to contagion.
Liquidity and the lender of last resort
A Banque de France research paper has found that a relatively small liquidity shock can disrupt markets, which means the probability of default for leveraged investors is higher than standard risk measures suggest.
BIS paper on house prices in emerging Europe
This BIS working paper examines the determinants of house price increases in central and eastern Europe.
EMU has led to increased stability and convergence
Monetary union has led to increased stability and convergence of financial markets in euro area, a new paper from the CEPR finds.
Links between ownership, market structure and risk
The relationship in developing countries between banks' risk of failure, market structure, their ownership, and screening and bankruptcy costs is investigated in an International Monetary Fund paper published on Wednesday.
The effect of expansion on EU inflation rules
The Bank of Estonia has published a paper that examines the impact of the expansion of the EU on the Maastricht inflation criterion.
Rate signals and CB transparency
Interest rates should be added to the list of signals that central banks can reveal in order to be transparent, according to a paper published by the Centre for Economic Policy Research.
A case for hedge fund regulation
The unique nature of hedge funds could lead to market failures that counterparty credit risk management (CCRM) practices cannot easily assess, according to an article published by the New York Federal Reserve.