Research
BoE economist explores ‘active’ QE model
Quantitative easing could be made a more conventional part of central bank toolkits, used to help support spending and inflation, says Harrison
BoE paper sets out financial stress index
Index aims to capture systemic risk by aggregating market-based indicators of stress
House prices in German towns may be overvalued by 30% - Bundesbank
Overall housing market risk still seems to be “limited”, Bundesbank says
Cocos lower banks’ funding costs – BIS paper
Mechanical triggers and equity conversion strengthen cocos’ impact, paper finds
Slower health care price rises limiting US inflation, San Francisco Fed paper says
Medicare prices rise by 1.1% annually since 2012, compared with 3.5% in mid-2000s
ECB’s public sector asset purchases pushed down repo rate, BdF paper finds
Effect was particularly strong before January 2017, researchers say
ECB should not raise rates until 2020 – OECD
OECD says European Central Bank should “gradually” taper asset purchases in 2018
Ultra-low rates hampered productivity in US, researchers find
A slower pace of policy normalisation can help boost productivity and growth
Bank of Canada paper investigates the ‘burden of coins’
Research sheds light on consumer behaviour when making low-value transactions with cash, suggesting cards more likely to be used if large amount of coins will be received
Globally active banks have made 'major changes' to funding mix – Spanish paper
Banks used funding from cross-border subsidiaries more after 2007, researchers say
Banking sector openness affects policy transmission, BoK paper finds
Bank of Korea study focuses on smaller open economies
Public satisfaction with BoE rises with policy understanding
The research recommends targeting young people with low incomes, as well as women
More work needed on supply channel of finance – BIS paper
Demand-side links between the financial and real sectors are better understood, say authors
San Francisco Fed study: cash is not dead yet
Demand for notes and coins is “strong”, says the study, with cash in circulation growing in the majority of nations
‘Paradigm shift’ needed for S Korea, warns IMF paper
Authors say “big push” is needed toward implementing social protection and “greater” economic freedoms
NY Fed economists reveal big-data approach to nowcasting
Paper sets out the New York Fed’s model for producing early estimates of major indicators
DNB publishes hacking guide for cyber security exercises
“Red teams” must simulate attacks on critical functions, guide says
Central banks should not give impression of ‘complete foresight’
Bank of Canada officials say the goal is to convey “comprehensive assessment” of factors affecting policy while acknowledging uncertainty
ECB criticises banks’ Brexit plans
Central bank stresses institutions need to have meaningful operations in the eurozone
Central banks should combine monetary rules to achieve objectives – research
Estimates based on different models should be updated regularly, authors say
Austrian paper takes detailed look at regulatory integration within EU
Researcher uses “bilateral nature” of EU reforms to help gauge effects
BIS paper studies how weak banks beget zombie firms
Weak banks have a tendency to misallocate capital, authors find, though the effect is only important in the long run, in contrast to earlier studies
Riksbank’s executive board divided over QE programme
Some members advocate ending stimulus in December, others fear that could reduce inflation
NY Fed paper estimates US contagion risks
Authors design a network model incorporating non-banks to estimate how the risk of a “default cascade” has changed over time