Research
SF Fed paper on the bond yield 'conundrum'
The Federal Reserve Bank of San Francisco Working Paper "The bond yield 'conundrum' from a macro-finance perspective," published May 2006, documents the extent and timing of the bond yield conundrum using two empirical no-arbitrage macro-finance models…
Enforcement and the stability and growth pact
The IMF Working Paper "Enforcement and the stability and growth pact: How fiscal policy did and did not change under Europe's fiscal framework" published May 2006, says that the Stability and Growth Pact has been a success in numerous EU countries,…
Framework for independent monetary policy in China
According to this IMF Working Paper, published 15 May, as China's economy becomes more market based and continues its rapid integration into the global economy, having an independent and effective monetary policy regime oriented to domestic objectives…
The origins of bubbles in laboratory asset markets
The authors of this Atlanta Fed Working Paper, published May 2006, conduct experiments that are designed to investigate individual probability judgment error and speculative behaviour. They find that both factors contribute to the creation of asset price…
Central bank intervention and ex rate volatility
The St Louis Fed Working Paper "Central bank intervention and exchange rate volatility, its continuous and jump components" analyses the relationship between interventions and volatility at daily and intra-daily frequencies for the two major exchange…
A hands-off central banker?
According to the Working Paper "A hands-off central banker? Marriner S. Eccles and the Federal Reserve Policy, 1934-1951" published April 2006, the Federal Reserve after 1935 acquired new instruments to command monetary policy, but it did not change its…
Kansas Fed's Payments system research briefing
The Kansas City Fed's Payments system research briefing for May 2006, examines the potential for fraud associated with various "traditional" payment methods and the protective measures that consumers should take when using them.
U.K. inflation targeting and the exchange rate
This St Louis Fed Working Paper, published May 2006, considers whether it is welfare-reducing to target inflation in the CPI rather than in a narrower index.
Joint Forum paper on liquidity risk management
The Joint Forum on Wednesday 3 May released a paper on funding liquidity risk management practices in use by conglomerates engaged in banking, securities and insurance activities.
An Asian monetary union?
This Working Paper from The Australian National University, published April 2006, empirically examines whether a group of 12 Asian countries is suitable to form an Asian Monetary Union (AMU).
Paper on political authorities and central banks
The Working Paper "Do interactions between political authorities and central banks influence FX interventions? Evidence from Japan" published April 2006 proposes a model that takes account explicitly of differences in exchange rate objective between…
Information & interest rate-setting central banks
The Working Paper "How much information should interest rate-setting central banks reveal?" extends Morris and Shin's model to the case where the central bank must anyway convey some information by setting the interest rate.
ECB paper on interest rates and exchange rates
The ECB Working Paper "How does information affect the comovement between interest rates and exchange rates?" compares the link between exchange rates and interest rates under full information and two alternative asymmetric information approaches.
Guarding against large policy errors
In the Bank of Canada Working Paper "Guarding against large policy errors under model uncertainty" the author discusses some recent approaches that can be used to avoid large policy errors when policy-makers are uncertain about the true model of the…
How/why do consumers choose their payment methods?
In this Kansas City Fed RWP Stacey Schreft takes a detailed look at the state of research on this subject, where research needs to go, and why such research is important for monetary policymakers and banking regulators.
The UK current account deficit and all that
Bank of England Monetary Policy Committee member Stephen Nickell said in a paper published on Tuesday 25 April that the UK current account deficit is probably sustainable so long as average returns on equities exceed those on debt.
Chile paper on central bank independence
The Central Bank of Chile Working Paper "Central bank independence and monetary policymaking institutions: Past, present, and future" published April 2006 reviews the institutional changes that occurred over the last two decades in the area of central…
Transparency, expectations, and forecasts
Since 1994 the Federal Open Market Committee has increased the transparency about its economic outlook. This paper from the Federal Reserve Bank of Atlanta investigates whether this transparency has helped private agents improve their economic forecasts.
Danmarks Nationalbank in international comparison
The Danmarks Nationalbank Working Paper "Danmarks Nationalbank's operating costs and number of employees in an international comparison" benchmarks Danmarks Nationalbank against a number of other central banks with respect to operating costs and the…
Who directs the Federal Reserve Banks?
The Financial Markets Center's tenth annual analysis of Reserve Bank boards of directors, published Monday 10 April, shows that turnover has increased since 2005 while representation of labour and consumer interests remains modest.
Is the ECB so special?
The paper "Is the ECB so special? A qualitative and quantitative analysis" analyses the European Central Bank (ECB) monetary policy over the period 1999-2005, both from a qualitative and a quantitative perspective, and compares it with the Federal…
Perspectives on low global interest rates
This IMF Working Paper, published March 2006, looks at the dramatic decline in global real interest rates in recent years from a historical perspective and examines the various factors that may account for this trend.
ECB paper on the effects of EMU
The ECB Working Paper "What effects is EMU having on the euro area and its member countries? An overview" published March 2006, addresses the effects of the European Economic and Monetary Union (EMU) since the introduction of the euro -- on economic and…
An evaluation of World Economic Outlook forecasts
This IMF Working Paper, published March 2006, reviews the performance of its World Economic Outlook forecasts against both actual outcomes and alternative forecasts.