Research
MMT rests on ‘untested statements’ – Richmond Fed paper
Authors warn that modern monetary theory rests on shaky foundations
Demand for US services likely to rebound- Cleveland Fed survey
Study says US consumers have become more optimistic, except older people
MMFs should increase public debt investment – ECB paper
Regulatory framework for money market funds has “fragilities”, researchers argue
‘Bottom-up’ approach can improve inflation forecasts – BoE paper
Item-level inflation data contains useful information for forecasting, authors find
BIS launches database on Covid-19 monetary policy actions
Data designed to help researchers study “massive” policy response to pandemic
Judicial efficiency improves bank credit – Bank of Italy paper
Banks lend more freely and at lower rates in regions with swifter bankruptcy proceedings
Richmond Fed: is US ready for digital dollar?
Brief argues there are questions to answer before embarking on CBDC
Newspaper text can improve growth forecasts – DNB research
Sentiment index can cut errors in short-term forecasts, study finds
Bank regulation can ease non-bank distortions – BIS paper
Authors challenge common narrative that bank regulation can worsen non-bank instability
Funds’ synthetic leverage should be monitored – Bundesbank paper
Researcher presents new method for assessing one type of risk-taking by mutual funds
Bundesbank paper looks at German inflation expectations
Social media forms less realistic picture of current price levels than traditional news – researchers
Fed chair’s tone of voice impacts stock prices – NBER paper
Study uses deep learning to study variations in tone, finding stocks respond but not bonds
Credit line exposures worsened Covid bank stock crash – NBER paper
Authors suggest “contingent leverage” could be included in stress tests
Firms and consumers form expectations differently – Irish paper
Confidence leads eurozone firms to expect higher inflation, but consumers to expect lower, says research
Pandemic likely to worsen market concentration – IMF research
Authors warn rising market power tends to impair monetary and fiscal policy
Pandemic payout freeze increased lending - BIS paper
Research finds restrictions depressed equities but augmented capital buffers and boosted loans
Fed paper finds ways to boost forecast performance
Adding extra information can help make forecasts more accurate and robust, authors say
Fintech use shows international gender gap – BIS paper
Women use fintech less than men but reasons for this are unclear, survey finds
Expectations play key role in policy transmission – BoE paper
Authors use high-frequency data to assess importance of term premia and expectations
BoE paper outlines new theory of automation and inequality
Authors highlight “new theoretical mechanism” linking automation to higher wealth inequality
‘Do bank supervisors wear too many hats?’ asks BIS paper
Many countries require array of mandates beyond “safety and soundness”, authors say
Link between poor culture and higher bank risk ‘substantial’ – BoE paper
Regulators should ‘interrogate’ firm data to improve bank risk models, economists argue
Cash in circulation to remain elevated, Bank of Canada research says
Withdrawal and deposit relationships and high denominations to blame
BIS paper proposes solution to ‘runnable brown assets’
Central bank liquidity backstop could boost stability and encourage firms to go green, authors say