Research
Fiscal policy needed to tackle next crisis – Riksbank research
Low interest rates limits monetary policy influence, but opens the door to sustainable fiscal stimulus
CBDC need not pose stability threat – paper
Markus Brunnermeier and Dirk Niepelt say some arguments about CBDC are “questionable”
Local shocks may outweigh global factors for EMEs – ECB paper
US monetary shocks less important than much recent literature argues, researchers say
BIS paper models dollar’s debt dominance
“Debt view” of dollar dominance has empirical support, authors say
BIS paper finds cross-border links between monetary and macro-pru policy
Authors discover “significant interactions” between policies
Open and closed economy central banks react differently to inflation – research
Some economies respond more strongly to certain variables, Fernando Leibovici says
Bank of Italy paper looks at impact of long-term rates
Long-term rates have significant impact on Italian banks’ risk appetite, researchers find
New IMF data reveals non-banks drive capital flows when global risks rise
Evidence can be used to analyse how changes in industry mix can impact capital flow volatility, researchers say
Trade protection leads to recessions in the long run – Bank of Canada researcher
Some policies can provide temporary booms in the short run, Yuko Imura finds
Risk of hitting ZLB in next three years is low – San Francisco Fed paper
ZLB should not be a concern for monetary policy at this stage, researcher says
Changes in uncertainty can affect US long-term rates – ECB paper
Researchers say “uncertainty shocks” may account for about one-half of long-run rate changes
Tighter loan-to-value ratios have stronger impact than a reduction
Other regulations might impact the effectiveness of LTV limits, the authors say
San Francisco Fed researcher seeks to improve Phillips curve
Introducing an “interaction variable” can increase predictive performance, researcher says
Market power is a ‘puzzle’, BoE team says
Micro and macro evidence do not seem to match up, the authors say
Macro-prudential and monetary policy work well together – ECB paper
Monetary policy can be used to cushion shocks caused by counter-cyclical buffers, researchers find
Williams favours average inflation targeting in new research
New York Fed president analyses three groups of inflation-targeting regimes
Bank of Italy paper presents new financial stress indicator
New model identifies financial stresses missed by others, authors say
Bank profitability is associated with lower systemic risk – IMF paper
Over-reliance on non-interest income can increase institutional and systemic risk, researchers find
ECB paper looks at eurozone banks’ exposure to securities
Granular study of eurozone securities can help analysis of financial crisis contagion, study argues
Liquidity strain heightened since September – IMF’s GFSR
Regulations and investment innovations could be driving factors, the IMF report says
IMF researchers present guide to enabling negative interest rates
Exchange rate between cash and bank reserves is the “best approach”, researchers say
Sluggish investment was key factor in weak post-crisis recovery – IMF research
Output losses affected countries regardless of whether they had suffered a banking crisis
State-backed mortgages promote little homeownership – Fed paper
Guarantees can lead to inflated house prices, researchers warn
Financial openness key for monetary spillovers – RBA research
Trade flows appear not to contribute to interest rate correlation