Research
UK and Japan react to house prices, but not Fed
The Bank of England's and the Bank of Japan's monetary policy responds to house price changes, but the Federal Reserve's does not, research by the Riksbank finds.
Dollar's value linked to US productivity
A more productive United States workforce indirectly enhances the dollar's value, research published by the San Francisco Federal Reserve finds.
New thinking on large current-account deficits
Governments should not necessarily intervene to reduce the large current-account deficits of the United States and many of the euro area economies, research published by the International Monetary Fund finds.
CEPR proposes solution for fiscal dilemma
Game theory and inflation targeting could provide the best solution to the problem of fiscal policy impacting monetary policy, a paper published by the Centre for Economic Policy Research (CEPR) finds.
Boston Fed blames subprime on house price decline
In conducting what it calls "the first rigorous assessment of the homeownership experiences of subprime borrowers", the Boston Federal Reserve has found that the decline in house prices that began in the summer of 2005 is the factor most responsible for…
Jury still out on global saving glut theory
New research published by the Reserve Bank of Australia finds limited support for the argument that financial crises have contributed to the current-account surpluses in developing economies.
Beige book reveals reduced US expansion
The latest edition of the Federal Reserve's Beige Book shows that consumer spending has slowed and that the financial services industry has become a drag on growth, but that the economy grew nonetheless.
Fed's forecasts have declined since early 1990s
The Federal Reserve's forecasts of inflation and output have deteriorated since 1991, research published by the Central Bank and Financial Services Authority of Ireland finds.
HKMA predicts impact of capital flow reversal
Improvements in external payment positions and financial strength have increased the resilience of Asian economies to a reversal of capital flows, research published by the Hong Kong Monetary Authority finds.
Consumption and income link strengthens in slump
Private consumption is more sensitive to changes in disposable income during recessions, research published by the Bank of England finds.
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.