Credit crunch
Constâncio discusses possible changes to new ECB model
Modelling of aggregate consumption and expectations must improve - ECB vice-president
Paper examines relationship between monetary policy and bank funding crises
Current regulatory tools are not sufficient to contain bank runs, Canadian working paper suggests, underscoring the importance of policy measures such as reserve requirements
ECB working paper links tight credit conditions to large investment cancellations
Industries most reliant on bank debt in eurozone worst hit by negative bank credit supply shocks, ECB paper finds
BIS paper tackles redistributive effects of regulation
Working paper studies how regulation tips welfare in favour of the real economy or financial sector, and suggests how regulators might deliver a Pareto improvement
BoE paper finds QE did boost bank lending - slightly
New data set shows effect of increased deposits did feed through to lending, though the effect was dampened by lower levels of capital during the crisis
Minneapolis Fed paper challenges New Keynesian ‘liquidity trap'
New model challenges dominant view of post-crisis monetary policy, claim Minneapolis Fed economists
Monetary and macro-prudential co-ordination works well when pulling in same direction
Monetary and macro-prudential policy co-ordination brings benefits when they are both aiming at the output gap, but not when the regulator emphasises financial stability
Credit-strapped Canadians continued to consume in wake of crisis
Lending supply effect ensured households compensated for scarce credit by drawing down liquid assets instead, according to Bank of Canada research paper
Government intervention shielded Korea from global credit crunch
Paper by Bank of Korea and IMF economists argues external buffers such as foreign reserves and swap agreements means the country is in good shape to weather global financial turmoil
Link between ECB liquidity ops and interbank repo breaks down in crisis
Researchers at the New York Fed find that the relationship between ECB monetary policy operations and interbank borrowing did not survive the collapse of Lehman Brothers and associated crisis
Financial crisis hit Australian inventories, paper finds
RBA researcher tests theory that tight credit conditions caused Australian companies to reduce their inventories, and includes a case study on the automotive industry supporting the hypothesis
National Bank of Denmark winds up emergency lending measures
Six-month loans against a broad range of collateral introduced during the financial crisis will be terminated next year as normality returns to financial sector, central bank says
Uncertainty constrains credit supply, IMF paper finds
Working paper tests the theory that uncertainty would reduce the supply of loans in an economy, and finds it holds true - especially for smaller credit institutions
International banks pose risk to global financial system, NY Fed paper finds
Evidence from 2007 suggests banks can more easily deal with a credit crunch in their home jurisdiction than they can overseas, which could be a weak point in the global system, paper finds
RBA research analyses factors driving US credit crunch
Working paper finds shutdown of the securitisation market explains a ‘significant share’ of the credit tightening in the US in the run-up to the global financial crisis
McKinnon says Fed must raise rates to stimulate growth and employment
Leading academic says positive real interest rates are the only way out of a credit crunch that's holding back lending to the productive economy
Irish governor discusses credit conditions
Patrick Honohan, governor of the Central Bank of Ireland, says credit conditions for SMEs are "tougher in Ireland than anywhere elsewhere in the euro area"
UK banks miss 'Project Merlin' lending targets
Results of 'Project Merlin' show bank net lending fell in 2011; major banks missed targets for lending to smaller businesses
Credit booms linked to financial crisis – IMF paper
IMF working paper shows credit growth becomes less dependent on bank soundness during boom periods
CEPR: market liberalisation exacerbated credit crunch
Centre for Economic Policy Research study on financial crisis finds countries with deregulated markets were most negatively affected in credit markets
IMF: local currency lending cushioned crisis blow
IMF study shows increased domestic currency lending led to relatively strong access to credit in American countries following credit crunch
Boston Fed: the housing portfolio effect
A study by the Boston Federal Reserve explains why Americans buy unaffordable homes when the housing market is appreciating
Central Bank of Ireland – Developments in Private Sector Credit
Irish central bank’s note shows private sector credit continued to shrink, and lending both to banks and non-banks dropped in the final quarter of 2009
Bank’s Haldane stresses limits of regulation
Rules alone will not be enough to restore trust and spur a full recovery says Bank of England’s executive director for financial stability