Research
We don’t need cryptocurrencies – former St Louis Fed economist
Current payment infrastructure and physical cash already provide the benefits offered by cryptocurrencies, says Stephen Williamson
Credit constraints hits smaller eurozone firms’ investment – Spanish paper
Researcher finds credit constraints have less impact on working capital and growth
RBA paper proposes new method of mapping the banking network
“Density-based” approach helps overcome shortcomings of other methods, authors say
Lacklustre recovery down to pre-crisis factors – research
San Francisco Fed article says weak recovery in the US due to long-running factors, and not the immediate impact of the global crisis
New York Fed economists unconvinced on crypto’s viable uses
Cryptocurrencies would work in dystopian world, economists say, but current environment means advanced economies have no need for them
US real GDP growth accelerating in 2018 – Atlanta Fed
The real-time index GDPNow forecasts an annualised expansion of 4% in the first quarter
Deflation tends to de-anchor expectations – BIS paper
Deflationary episodes seem to render expectations lower and more backward-looking
Fijian authorities say there are no plans to lift capital controls
IMF warns not removing controls could harm foreign investment; central bank says it will review controls with respect to the level of foreign reserves
Standard measures understate slack in European labour markets – ECB paper
Researchers use survey data from 24 countries to track effects of sovereign debt crisis
Globalisation may reduce surpluses’ negative effects – paper
Nations recording surpluses do not necessarily create imbalances abroad, argues analysis
Lower growth follows credit booms with high-yield lending – paper
Lending standards in bond markets track banks’ credit standards
‘Intensified’ tax competition will affect euro area – research
Latest ECB bulletin shows “possible erosion of tax bases” in the EU, after recent US tax reforms
Banks not necessarily more opaque than other firms – BIS paper
Study compares stock returns of those with insider knowledge against the wider market
Misinterpreting commodity price swings can be damaging – BIS paper
Whether movements are down to supply shocks or changes in global demand matters for policy, and mistakes can be procyclical when central banks act together
Renminbi struggles to gain prominence on global stage – Swift
Chinese currency usage only accounted for 1.61% of domestic and cross-border payments in December 2017; digitisation may be the key to currency’s success
Banks expand some lending following crises, research shows
While portfolio lending is restricted, banks expand some other forms of lending
Inflation falls in the euro area despite stronger growth
Annual price increases expected to fall to 1.3% in January, Eurostat says
Consumption closely tied to house prices in Netherlands – research
Strong correlation attributed to structural features of mortgage market
Risks to China’s financial sector are growing, ECB paper says
Banks are exposed to rapidly growing shadow banking sector, researchers say
Global influence on local financial conditions is stable, research finds
Share of financial fluctuations caused by global factors has not markedly risen in last two decades
Finnish paper examines 19th century Chinese lending
Loans to officials show how banks can enforce repayment despite hostile legal environment
Central bank communications risk circularity, says BIS paper
Policy communications influence market prices and market prices influence policy, warn Stephen Morris and Hyun Song Shin
Income convergence in reverse among original euro members, research says
Fall in income disparities halted soon after 2002 and started to increase after financial crisis
Rebased ‘Maddison’ data reshapes economic history
New approach to measuring GDP per capita generates fresh insights from the long-run growth database