Research
NY Fed paper scrutinises post-crisis CDS market
Little research has been done on the market at a “granular level”, authors say
Most financial stability committees lack policy tools, researchers say
Many committees lack good internal processes and ability to implement policies, authors say
US bank interconnectedness is falling – San Fran Fed paper
New method focuses on idiosyncratic factors to identify possible links, researchers say
Phillips curve still applies to Sweden, Riksbank researcher says
Firm-level data indicates that traditional relationship still holds, paper argues
Buffers should not be rebuilt too quickly – Bank of Canada paper
Requirements should be lower during crisis recovery to avoid bank default, researcher argues
Sub-Saharan Africa could be fintech hub – IMF author
Wider adoption of mobile banking provides platform for further developments, says Amadou Sy
ECB prevented further eurozone deflation, BdF paper says
Researchers say inflation and GDP growth would have entered negative territory in 2015–17
BoE paper outlines results of uncertainty experiment
Decision-maker panel seeks to gauge business uncertainty in the context of Brexit
GDP needs to be supplemented with welfare measure – economist
Daniel Sichel defends GDP as a measure of production, but says it is not enough on its own
Bank of Spain paper rejects bitcoin as alternative to large-scale payment system
Objectives of crypto asset make it unsatisfactory as a payment network – research
Flattening yield curve increased retail banks’ profits – Chicago Fed
The results reflect a change in banks’ business models after the financial crisis, researchers say
Volcker rule helped curb equity market risk – researchers
Banks had large trading exposures to equity market risk before the rule was introduced, they find
Weak EU banks more likely to prop up ‘zombie firms’, ECB paper says
EU needs insolvency reform to reduce proportion of uncompetitive firms, researchers argue
African countries leveraging data for regtech
IMF paper shows countries are looking at how to use tech to streamline supervision processes
ECB paper presents new financial crisis early warning system
Model aggregates five types of systemic risk indicator, researchers say
Globalisation is helping to flatten Phillips curve – Fed paper
Price sensitivity to output changes is significantly weaker in high trade-intensive industries
For-profit CCPs may not hold socially optimal capital – BIS paper
“For-profit CCPs have incentives that are misaligned with financial stability,” author says
Balance sheet normalisation has put upward pressure on borrowing costs – Kansas Fed
Levels of reserves still influences borrowing costs despite post-crisis monetary policy framework
CBDC is mixed bag for financial stability – Bank of Korea
Central bank paper highlights stability concerns but says there are instances within which a CBDC could strengthen stability
Monetary policy must respond aggressively to persistent shocks – BoI paper
Researchers model economy where central bank has less information than private firms
Negative rates could have sped up US recovery – San Fran Fed paper
Output gap could have been reduced by as much as half compared to actual figures, researcher says
Unconventional policy should be used rapidly – Fed paper
Researchers find 20–50% chance that US will face zero lower bound in next decade
ECB policy affects Eastern European economies – Bank of Italy paper
Researcher uses “shadow interest rate” methodology to measure monetary policy spillovers
Kristin Forbes urges academics to focus on macro-prudential policy
Our understanding of the tools and ability to spot new risks remain limited, professor says