Economics

Relationships help for IPO performance

Investors prefer initial public offerings (IPOs) managed by relationship banks than similar ones managed by outside banks, according to research by the Chicago Federal Reserve.

Three US economists scoop Nobel prize

Leonid Hurwicz, Eric Maskin and Roger Myerson are the winners of the 2007 Sveriges Riksbank Nobel Prize in Economic Sciences, the Royal Swedish Academy of Sciences said on Monday.

Do trade costs explain macroeconomic puzzles?

Research published by the Reserve Bank of Australia finds some evidence that trade costs do, at least in part, explain three monetary policy puzzles; the purchasing power parity real exchange rate persistence puzzle, the Feldstein-Horioka saving…

China likely to replace Zhou

Zhou Xiaochuan, the governor of the People's Bank of China, is set to lose his job as part of a wide-ranging reshuffle, the details of which will be announced at next week's party congress.

Can rainy-day funds make a difference in Europe?

The Bank of Italy has published a paper looking at whether rainy-day funds, which US states (who usually have to balance their budgets) use to limit procyclical fiscal policies, have a role to play in European fiscal policy.

Kroszner on the role of the Fed

Randall Kroszner, a member of the Federal Reserve's Board of Governors, listed the central bank's responsibilities with regard to monetary policy, supervision and consumer protection in a speech on Thursday.

ECB paints rosy picture for the future

Though the banking crisis has caused uncertainty, the eurozone looks set to continue growing in the medium term, according to the latest edition of the European Central Bank's (ECB) Monthly Bulletin.

Differing results on investment adjustment costs

A Bank of England paper evaluating the costs of changes in investment shows the elasticity of investment with respect to the shadow price of capital (the value to the firm of one additional unit of capital) to be 15 times larger than aggregate models…

Uribe charts Colombia's progress

Bilateral trade agreements are allowing Colombia to profit more from globalisation, according to Jose Dario Uribe, the governor of the Banco de la Republica, Colombia.

Currency rise wanted by EU chiefs

Jean-Claude Trichet, the president of the European Central Bank; Jean-Claude Juncker, the prime minister of Luxembourg; and Joaquin Almunia, the European commissioner for monetary affairs said on Monday that they wanted the renminbi, the dollar, and the…

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