Research
Sarb paper questions assumption that government debt is low risk
Banks may need to reduce exposure to sovereign debt instruments as fiscal risk rises
BoE says stablecoins must be as trustworthy as commercial bank money
Stablecoins may require tailored regulation and access to emergency liquidity facilities, paper says
‘Preventive restructuring’ reduces unnecessary bankruptcies – BdF paper
Researchers compare data from French preventive restructuring and traditional bankruptcy systems
RBI faces dilemma from US policy spillovers – BIS paper
Authors highlight evidence of “contractionary devaluation” when US monetary policy tightens
Inequality can worsen recessions – BIS paper
But authors say there is little evidence that income inequality affects consumption in normal times
Time series models need adapting for Covid-19 shock – ECB paper
Authors explain methods for making Phillips curves and VAR models more robust
Communication needs to be adapted for different audiences – RBA research
Producing information in different formats may improve success of economic communication
Firms are ‘inattentive’ to inflation and monetary policy – NBER paper
Authors present new survey data indicating firms’ expectations are “anything but anchored”
IMF proposes $50bn plan to ‘end the Covid-19 pandemic’
“Upfront” financing is needed to accelerate vaccinations, say Georgieva, Gopinath and Agarwal
Leverage ratios fall for most US bank categories
Kansas City Fed report finds G-Sibs increased capital buffers, mainly due to SLR exemption
ECB paper offers model of interbank contagion
Researchers say policymakers can use their work to prevent and manage financial crises
Policymakers should consider adjusting ECB’s target – BdF paper
Lower eurozone r* points to adjustment of monetary policy strategy, researchers find
EU banks that were stress-tested reduced credit risk – ECB paper
Banks that were subject to 2016 stress tests reduced risk compared with control group, researchers find
BoE paper explores liquidity traps with ‘Hank’ model
Precautionary savings can send economy into deflationary spiral, authors find
Danish central bank urges use of payments data in forecasts
Data provides good forecasts during normal times, but deteriorates in stressed conditions
Asset managers should face minimum cash levels – ECB paper
Researchers say macro-prudential measure would improve market allocation of financial resources
Paycheck protection facility supported lending – Fed paper
Study finds liquidity facility helped banks lend more to small businesses during the Covid-19 crisis
BoE paper highlights link between mortgage limits and consumption
Authors find “new link” between down payment requirements and household consumption
Chilean central bank measures country’s carbon footprint
Study aims to create methodology to assess emissions and develop plan to cut footprint
Central clearing of Treasuries could cut disruption – NY Fed paper
Central clearing could have avoided most settlement failures during Covid-19 crisis, authors say
Central bank ‘activism’ risks long-run costs, paper argues
Central banks acting outside their mandate is “never without cost”, law professor says
ECB paper measures economic uncertainty in eurozone
Researchers present method to monitor changes in uncertainty in eurozone and its trading partners
Foreign banks can reduce harm of ‘doom loop’ – ECB paper
Cross-border banks in eurozone countries soften effects of sovereign stress on credit
Macro-prudential tools can boost long-run growth – BoE paper
Authors develop theoretical framework linking financial frictions to long-run growth