Research
Basel II's procyclical costs
By increasing capital requirements during economic downturns, Basel II will offset improvements in monetary policy trade-offs caused by countercyclical variations, research published by the Bank of Finland finds.
Chinese and Indian roles in world markets limited
China's and India's roles in the global financial system are relatively limited, research published by the European Central Bank finds.
More banking competition produces mixed results
A u-shaped relationship exists between competition and the risk of bank failure, research published by the Centre for Economic Policy and Research (CEPR) finds.
Factors behind income growth are hard to fathom
Assessing the factors involved in income growth is difficult because small changes in the relative fit of certain models can lead to substantial differences regarding growth determinants, research published by the European Central Bank finds.
The optimal horizon for inflation targeting
The optimal horizon for inflation targeting is highly shock-specific, research published by the Central Bank of Norway finds.
The role of human error in the yield curve
Investors' systematic forecast errors are an important source of business-cycle variation in measured risk premia, research published by the Atlanta Federal Reserve finds.
Two papers on banking efficiency
The Philadelphia Federal Reserve has published two papers looking at recent evidence on how banks can achieve optimal efficiency.
ECB must take into account openness of eurozone
Empirical evidence published by the Centre for Economic Policy Research contradicts the assumption that the euro-area works as a closed economy, which is used by the European Central Bank (ECB) to model optimal monetary policy.
Banking risks must be considered together
The impact of credit and interest rate risk, the two most important dangers faced by commercial banks, must be measured jointly, research published by the Bank of England finds.
Bank governance strengthened by independence
Independent directors at commercial banks can provide an important internal governance mechanism for protecting shareholders' interests especially in large-scale transactions such as mergers and takeovers, research published by the Kansas City Federal…
An inflation forecasting model for the eurozone
The Banque de France is building tools to predict euro-area inflation as well as price levels in the national economy.
Fed's Beige Book charts modest growth increase
The latest edition of the Federal Reserve's Beige Book, published on Wednesday, suggests a slowdown in the pace of growth during November and December.
Structural change responsible for Great Moderation
The so-called 'Great Moderation' in macroeconomic volatility in the United States since the mid-1980's was down to structural change rather than good luck, research published by the Centre for Economic Policy Research finds.
Paper highlights influence of Taylor rule
The rise in influence of the Taylor rule, which shows how monetary policy should adjust to ensure growth and inflation remain near target levels, played an important part in the shift towards a more transparent, more independent era of central banking,…
Interbank borrowing reduces bank risk
Long-term interbank exposures result in lower risk for the borrowing banks, research published by the Centre for Economic Policy and Research finds.
Central banks with dual role face tough choices
Central banks, such as the Federal Reserve, with the dual mandate of maintaining price stability and economic growth, should not give equal weight to their inflation and unemployment goals, a study by the Kansas City Federal Reserve finds.
Stability not gradualism has influenced UK MPC
The relative paucity of rate changes at the Bank of England since the institution became independent in 1997 is down to the increased stability of inflation and output growth, rather than a rise in the degree of gradualism, research published by the Bank…
Complex rules pose a threat to stability
Opaque regulations not only deepen financial instability but also raise the likelihood of banking crises, research published by the Bank of Korea finds.
Japanese business prepares for e-money surge
The number of payment devices for processing e-money transactions in Japan is set to almost double by 2010 as the payment method gains popularity with consumers.
IMF growth forecasts fall on purchasing power data
The International Monetary Fund (IMF) has lowered its growth estimate for 2007 by half a percentage point after reviewing research published by the International Comparison Program, a global statistical initiative involving over 100 countries.
Central banks get cheaper cash from companies
Private-sector involvement in the printing of banknotes substantially lowers costs, research published by Colombia's Banco de la Republica finds.
Eurozone retail banking data shows convergence
Though cross-border differences in interest-rate levels persist, retail banking markets in the eurozone are becoming more integrated, research published by the Bank of Finland finds.
Central banks partly to blame for crunch
The creation of excessive global liquidity by key central banks was one of a number of phenomena that led to the current financial crisis, says Willem Buiter, a former member of the Bank of England's monetary policy committee, now an economics professor…
Renminbi's behaviour influences whole region
Since the exchange rate reform in July 2005, fluctuations in the renminbi have impacted the movement of other Asian currencies, research published by the Hong Kong Monetary Authority (HKMA) finds.