Research
Inclusion of 'spatial effects' help explain Colombian money market spreads, central bank paper argues
Traditional factors like 'size and leverage' insufficient to explain borrowing spreads, argues paper, which is 'first attempt' to model Colombian money market within a spatial econometrics framework
Emerging Asia must reform to keep growing, says IMF research
China and India have recently exhibited a decline in total factor production growth; demographic factors will be more supportive in India and some Asean economies than in China
Bundesbank paper finds benefits in concentrated bank lending
Researchers find that banks with more concentrated credit portfolios have lower expected write-offs and unexpected risk than their counterparts
Real exchange rates determined by 'cointegrated' factors, Bofit paper finds
Evidence suggests sectoral total factor productivity differentials, real interest rate differentials and real gold prices explain movements in bilateral US real exchange rates between 1970-2006
Bank of Albania paper trials CAB approach to estimate fiscal position
Bank of Albania economist applies cyclically-adjusted budget balance approach to estimate country's fiscal position, finding fiscal policy to be pro-cyclical
Commodity price inflation caused by 'financialisation', RBI paper finds
Research also shows private liquidity is inflationary while official liquidity is not and and that derivative traders, active and passive, have played an important role in inflation dynamics
Israeli paper finds ‘prolonged decline’ in Nairu
Researchers at the Bank of Israel utilise the Phillips and Beveridge curves to estimate the country’s non-accelerating inflation rate of unemployment between 1998 and 2012
Polish paper says monetary policy transmits mainly through real sector
Researchers at the National Bank of Poland build a structural vector-autoregression model that includes both fiscal and monetary policy
Fiscal policy can counteract Dutch disease, say Peru economists
If the gains from public investment are shared throughout an economy, then such government spending can counteract the harmful effects of Dutch disease
US community banks losing their edge with small businesses, paper finds
Fed discussion paper finds small, opaque businesses are just as likely to use a large banking corporation as they are a community bank; strong banking relationships remain important
Banque de France paper explains new GDP forecast model
New model aims to eliminate 'systematic upward predictive bias' since the crisis
IMF paper models sovereign restructuring in monetary union
Paper prepared by economists in IMF's fiscal affairs department shows the restructuring country's economy would suffer more if its residents hold most of its sovereign debt
Dutch paper finds that bonuses are main cause of distrust in banks
Researchers at Dutch central bank find that banker bonuses have a greater impact on public trust than government intervention, stock prices and media reports
Asian decoupling a figment of the great moderation, says BIS paper
Evidence of Asia's economic decoupling from the rest of the world was a symptom of low co-movement during tranquil economic times, which ended with the arrival of the financial crisis
Macro-prudential and fiscal co-ordination could pay big dividends, IMF staffers say
International co-ordination of macro-prudential and fiscal policies would have a far greater effect than the literature predicts for internationally co-ordinated monetary policy, paper shows
RBA bulletin considers CCP resolution
Reserve Bank of Australia quarterly bulletin features an article on the recovery tools and resolution regimes that could be employed when central counterparties suffer losses
John Taylor calls for international policy co-ordination
Paper published today by the BIS says recent unusual monetary policies have been appropriate and benign - and international co-ordination could lead to an international co-operative equilibrium
EU members are ‘growing apart' not growing together, paper finds
Researchers examine EU member states' ‘dynamic convergence' and find seven separate groups of countries that are not converging with one another
ECB working paper says sovereign spreads driven by fundamentals
Paper finds that before the crisis, eurozone sovereign spreads were somewhat decoupled from fundamentals, but since then, country-specific factors have played a bigger role than regional contagion
Monetary transmission not to blame for weak bank lending in Brazil, IMF paper finds
Fewer loans due to shift in demand and possibly rapid expansion of state bank credit; if anything, sensitivity of lending to Selic rate changes seems to have increased, according to author
Credit ratings hit prices 'significantly' more in times of crisis, paper finds
Effects of rating actions on market prices not crucial during favourable market conditions but 'very significant' in times of crisis; analysis covers ratings and prices of 16,500 bonds over 12 years
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
ECB working paper finds indebted countries should pursue austerity at ZLB
Model seeks to incorporate effects of government debt when examining how to tackle a liquidity trap at the zero lower bound
Italian paper finds government spending multipliers less than 1 at ZLB
The multiplier can go above 1 only when monetary policy is held constant for at least five years - but can still be reduced by elevated sovereign risk, researchers find