Macroeconomics
US lawmakers approve vote on four Fed nominations
Senate Republicans end boycott after Raskin withdraws bid, but oppose Lisa Cook
‘Financial concerns’ impact consumption – BoE paper
Households with financial worries have a higher marginal propensity to consume, survey shows
BoC paper highlights ‘profound impact’ of heterogeneity
Confluence of factors has pushed heterogeneity into the forefront of economic research, authors say
Kazakhstan’s president announces changes to powerful wealth fund
National unrest leads to changes at SWF that owns an estimated 40% of GDP
RBA develops new method of modelling financial sector
Approach takes Martin model “beyond the existing macroeconometric frontier”, say researchers
Biden nominates three to Fed board
Republican senator signals likely opposition to president’s pick for top supervisor
Economics Benchmarks 2021 report – executive summary
Covid-19 coloured central banks’ views on the governance of their economics function in the past year, from research topics to forecasting, data, publications and more
BoE paper warns of ‘non-standard errors’
Researchers may introduce additional errors to data samples through their analysis
BdF paper looks at use of capital controls and foreign reserves
Many countries combine both to moderate effects of international capital flows
Alternative data fuels central bank research
Important research areas include monetary transmission, exchange rates, digitisation, SMEs and climate change, against the backdrop of Covid
Fed's monetary policy ‘spillbacks’ have significant effects – ECB paper
Researchers estimate how impact of Fed policy on foreign economies in turn affects US
ECB paper examines exchange rates and household consumption
Exchange rate elasticity of household consumption driven largely by industrial goods - researchers
BIS statistics: OTC derivatives market value back to 2019 levels
Gross market values have fallen about a fifth since second half of 2020
‘Bullwhip effects’ worsening supply problems – BIS bulletin
Direct inflationary impact likely to be limited, but “sustained pressures” are possible, economists say
New York Fed opens new research centre
Marco Del Negro will lead work on research methods and issues in macroeconomics
GDP-linked bonds unlikely to ‘tame debt’ – BdF paper
Linking sovereign bonds to GDP would not necessarily improve debt ratios, researchers find
Asset sell-off biggest threat to Chile’s financial stability – Marcel
Governor reiterates warning against further pension withdrawals
NGFS’s climate stress tests bolstered by new macroeconomic modelling
NiGem model will help central banks better understand economic transmission channels
Biden stimulus will cause small, short price spike, says paper
San Francisco Fed predicts American Rescue Plan will boost inflation by 0.3%
Forecaster surveys improve eurozone inflation modelling – ECB paper
Households’ and firms’ expectations do not provide useful data on inflation
Delta variant had smaller impact on US consumer spending
Cleveland Fed finds weaker or no link between hospitalisation and spending in 2021
ECB paper examines ‘euroised’ economies
European countries’ informal adoption of euro places limits on central banks, says working paper
Fed’s Bullard believes a ‘five-year window’ for AIT is ‘realistic’
St Louis Fed president says “big tent language” was a reason overshoot details were not specified; “precise numerical implementations” can “get you into trouble”
Permanent or transitory? Officials wrestle with inflation uncertainty
Bailey warns of possible damage to credibility, but Carstens urges caution amid high uncertainty