Research
Fed paper looks at different CBDC types
“Account-based”, “cash equivalent” and “hybrid” CBDCs all have varying advantages – researchers
Deposit insurance schemes must be credible – Bank of Portugal paper
Cypriot and Portuguese insurance schemes failed to stop bank runs due to low credibility, researchers say
Stress test results affect consumer credit – Philadelphia Fed paper
Banks reduce credit supply after worse-than-expected stress test results, researchers find
Colombian exchange rate shocks are asymmetric – central bank paper
Impact of 2014 drop in Colombian peso lends support to “dominant currency” theory, authors say
Financial indicators can warn of European growth risks – ECB paper
Index that aggregates financial variables in non-linear way provides most information – researchers
Mexican sovereign debt faces tighter conditions - SF Fed paper
Liquidity premiums reached record highs in pandemic while foreign holdings fell, researchers find
Banks are crucial investment source for French firms – BdF paper
Researchers use BdF database to examine how French companies finance their investments
Rising debt has weakened eurozone – Bank of Spain paper
Highly indebted countries face lower output and limited ability to respond to crises, researchers say
Bundesbank paper uses neural networks for rate forecasting
Artificial neural networks outperform linear and non-linear functions, author says
Ageing population helps explain inequality in US – BIS paper
Firms gain greater market power as workers grow older, authors say
ECB paper sets out new dataset on trade invoicing currencies
Dataset sheds new light on the importance of “dominant currency paradigm”, authors say
Weak banks undermined first round of QE – BoE paper
Undercapitalised banks took defensive measures rather than boosting lending, research finds
Foreign financing can help exporters survive – BIS paper
Result could be important for the development of emerging economies, authors say
‘Big Tech’ firms could harm financial stability – DNB paper
Technology firms’ data access could lead to their dominance of some markets, researchers warn
ECB paper looks at Bayesian nowcasting
BVAR models have several advantages over Dynamic Factor Models, researchers say
BIS economists test fixes for credit-to-GDP gap
Measure has drawbacks as early warning sign, but proposed solutions have problems, authors find
LTV ratios need reform, ECB paper argues
Macro-prudential tools must now apply to real estate funds financed by non-bank loans – researcher
Bundesbank paper examines stress-test models
Authors present a method to investigate how well stress tests predict bank failures
New York Fed paper examines MBS price dislocations in March
Flight to safety and dealer balance sheet constraints widened cash-forward basis, researchers find
Improvements in US consumer expectations halt in July
Households more pessimistic as Covid-19 continues to spread, New York Fed survey reveals
BoE paper outlines ‘capital flows-at-risk’ framework
Methodology allows researchers to explore full distribution of “push” and “pull” effects on capital flows
Fed paper: market power can cause inequality and instability
Market power can explain a lot of recent undesirable “secular trends”, authors say; redistribution could have macro-prudential benefits
Emerging markets face L-shaped recession – paper
Researcher works back from growth forecasts to see how Covid shocks might play out
US unemployment falls to 10.2%
Miscalculation errors continue to understate headline figures, Peterson Institute research finds