Research
OTC derivatives trade grows by 135%
The value of positions in the over-the-counter derivatives market has increased by 135% in the last three years to $516 trillion, the Bank for International Settlements finds.
The drawbacks of disinflation policies
Economies enter persistent recessions and inflation heads above the long-run level in the immediate aftermath of a disinflation policy, research published by Banque de France finds.
Asia-Pacific economies getting closer
The interdependence of Asia-Pacific economies has increased since the turn of the millennium, research published by the Bank of Japan finds.
Taylor inertia conundrum solved?
Inertia in the Taylor rules on interest rates could be down to inertia in the economy itself, argues research published by the Centre for Economic Policy Research.
Simple rate rules deemed most effective
Simple interest rate rules which include a response to money growth outperform both Taylor-type rules and speed limit policies once real-time output gap uncertainty is accounted for, research published by the Bundesbank finds.
Impact of globalisation on risk sharing small
Financial globalisation does not result in as much risk sharing as theory predicts, research published by the IMF finds.
Financial developments in emerging Europe
Emerging Europe needs to ensure factor markets are flexible and financial systems strong to avoid painful economic adjustments, International Monetary Fund (IMF) research finds.
Improve enforcement non-EU emerging Europe told
Emerging European economies not yet members of the EU need to better enforce financial regulation if they are to continue to grow, International Monetary Fund research finds.
Model predicting instability in development
Charles Goodhart, a former member of the Bank of England's Monetary Policy Committee, and Dimitrios Tsomocos, a lecturer in financial economics at Oxford University's Said Business School, are working on a model aimed at alleviating financial fragility.
Regulators need to better enforce securities laws
The effectiveness of securities market legislation is limited by regulators' lack of ability to effectively enforce compliance, research published by the International Monetary Fund finds.
Globalisation loosens banks' grip on inflation
Globalisation not only reduces domestic pressures on inflation but also reduces central banks' ability to control the pace of inflation, argues a research paper published by the International Monetary Fund (IMF).
West African consolidation boosts debt markets
The creation of the Central Bank of West African States has encouraged high-volume cross-border trading in local currency debt markets within the West African Economic and Monetary Union, IMF research finds
Commodity prices warrant close attention: Japan
Central banks need to analyse data on commodity markets in order to more fully understand movements in global financial markets, according to research published by the Bank of Japan.
IMF issues op-risk guidelines
The International Monetary Fund has published guidelines on enhanced market practice and more effective prudential standards for operational risk measurement.
Avoid absorbing default losses, central banks told
Central banks should beware of injecting funds aimed at absorbing losses associated with defaults to provide risk sharing, according to research published by the Bank of Canada.
Paper on inflation targeting
This research paper shows how the inflation-targeting regimes of Australia, Canada and New Zealand, has developed over time.
Paper on the price level stability
This research paper from the Bank of Portugal provides an overview of the arguments for assessing the case for price level path stability (PLPS).
Financial market perceptions of recession risk
Corporate credit spreads embed key information about the likelihood of recession one year ahead.
How monetary policy responds to uncertainty
Under conditions of uncertainty, optimal monetary policy responds more to price and wage inflation than to natural-rate terms, according to research published by the Federal Reserve.
The impact of innovation on systemic risk
The pace of financial innovation has led to an increasingly complex and interconnected financial system. But what effect does this have on systemic risk?
FDI and technology: emerging markets evidence
The impact of foreign direct investment on the real economy is unrelated to the level of technology in which the investment is made, according to a paper published by the Centre for Economic Policy Research.
Is a price or inflation target best for stability?
A paper looking at the costs and benefits of price-level and inflation targeting as tools for stabilisation policy has been published by the Bank of Canada.
External rigidity is behind lumpy price adjustment
External rigidity, not infrequent price changes, is the reason for large adjustment costs, research published by the Banque de France finds.
Non-bank financial firms' impact on the eurozone
The growth in the amount of deposits held by financial institutions other than banks in the euro area has led to the integration and deepening of the region's financial markets and a shift in the attitude of investors towards risk, research by the…