Research
Monetary policy missteps more likely amid AI boom – BIS study
Authors warn uncertainty over new technology leaves traditional benchmarks vulnerable
Eurozone non-labour income used for saving, not spending – paper
Erosion in financial wealth dragged on consumption, Bank of Italy study finds
Bank of Italy used balance sheet as monetary policy tool – study
Bank’s senior economist finds approach proved effective throughout the 20th century
EU defence spending boosts growth before inflation – CNB
Financial markets buy into defence equities well before government money has been spent, study finds
Frontier AI poses new cyber risks – BIS study
National and international co-operation needed to tackle increased threat
Argentina should borrow from international markets – Obstfeld
Economist calls for transition to floating exchange rate with inflation targeting
FX controls have minimal impact on stablecoin dollarisation – study
BIS working paper argues that growing use of crypto assets presents policy challenges for EDMEs
Shocks greater when inflation already high – BoE study
Bank publishes latest response to Bernanke review of UK monetary policy-making
Software may contain bugs for private credit – BIS paper
Bulletin says disruption from AI could cause outage for lenders heavily invested in sector
Banks are reallocating risk, not reducing it – NY Fed study
Under Basel III, banks’ parent companies have made NBFI subsidiaries more fragile, authors say
Regulators face trade-off when it comes to bitcoin – BdF paper
Rules can reduce price disparities but leave local markets vulnerable to potential shocks
Nine out of 10 Japanese people see prices rising
BoJ survey shows around half of respondents expect economic slowdown in a year’s time
More repatriated income does not always stabilise FX – BoK study
Paper recommends improved monitoring of foreign currency supply and demand
Race for investment could turn AI boom into bust – BIS study
Paper warns of fragility through overcommitment and circular financing
NY Fed study points to more tariff-related inflation in US
Survey shows many firms plan to pass on further costs to customers over coming months
Policy transmission weaker in poorer countries – paper
Authors say disconnect may reflect limited financial inclusion and prevalence of informal credit
Perception is reality when it comes to comms – BoE paper
Study finds central bank messaging rarely reaches public, though it shapes media narratives
Some G-Sibs’ capital exceeds Basel III provisions – BIS study
Certain jurisdictions demand higher-quality capital than is required under post-GFC rules
Move to inflation targeting could boost resilience – IMF paper
Countries in Middle East and central Asia should make exchange rates more flexible, authors say
AI adoption not a race, BoK and World Bank tell public investors
Sovereign investors should approach AI as structural rather than tech change, paper says
BoE paper builds ‘house price-at-risk’ framework
Quantile regression method can shed light on tail risks at regional level, author says
Financial repression delivers stopgap funding without inflation risk – paper
NBER paper argues recent macro-prudential mandates are effectively forms of repression
Pooled reserves could improve global financial safety net – paper
‘Synthetic reserve deposit’ could cut costs and improve performance, authors say
Cheap Chinese imports keep eurozone goods inflation down
Paper says prices may stay low because of excess capacity, weak Chinese demand and yuan