Research
Dealing with ‘insidious' crises a ‘difficult proposition' for policy-makers, argues IMF paper
Conventional balance-sheet crises, however, are more effectively detected and contained than before the financial crisis, paper adds
Norges Bank paper finds ‘booming' resource sector has ‘significant' productivity spillovers
Working paper also finds evidence of two-speed economies, with non-traded industries growing at a faster pace than traded
Colombian economist extends Bernanke-Gertler model for open economies
Model holds for open as well as closed economies, Central Bank of Colombia paper finds, concluding that they are even more vulnerable to asset price bubbles
Bundesbank paper explores liquidity shock transmission
Claudia Buch and Linda Goldberg summarise the findings of empirical studies conducted across 11 countries to explore liquidity risk transmission
Small eurozone countries can use government spending to combat imbalances
ECB-published working paper examines small open economies in a monetary union, whose options for dealing with shocks are limited
ECB prize winners size up shadow banking
Working paper published by the ECB considers how regulatory arbitrage and the shadow banking sector can undermine commercial bank safety nets
Finnish paper says Sepa 'not enough’ on its own
Researchers argue that Sepa is an ‘important’ initiative but further measures will be needed to create an efficient payments system; call for ‘vigorous’ competition policies
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
The ‘Great Moderation' shows no sign of ending, Spanish paper finds
The great recession did not mark an end to the great moderation whose low volatility could be hampering a recovery, according to a new paper
ECB economists design early-warning guide to trigger macro-prudential intervention
Working paper isolates key indicators to tell policy-makers when to use macro-prudential measures, and which ones to use
Irish economists estimate property debt overhang on SMEs
Central Bank of Ireland researchers find a minimum of 20% of SMEs have direct exposures to property debt, which makes them more likely to default
One in 10 eurozone households spend more than they earn, Bundesbank paper finds
Households with female, young, or divorced heads have harder time making ends meet, but ‘rather confident in the possibility to get funded through informal lending channels'
Portfolio flows to emerging markets make asset prices volatile - IMF paper
Working paper unpicks domestic pull factors versus global push factors, finding the latter more powerful in determining portfolio flows
Korea needs more women and young people in work, paper finds
Labour market ‘duality' and low youth and female employment are holding back growth, according to paper written by Bank of Korea and IMF economists
Capital lured to EMs by interest rate differentials, CBRT paper finds
Inflation and global liquidity other important drivers of international capital flows post-crisis, but countries' growth rates have less effect
Limits to foreign lending would cut bail-out risks, Banque de France paper claims
Paper examines why countries bail each other out, and argues a tax on lending to foreign countries would stop investors betting on an implicit guarantee
Unconventional monetary policy has heightened medium-term risks to banks, IMF paper finds
No evidence that unconventional monetary policies has ‘helped' banks, according to paper; finds deterioration of medium-term bank credit risk in US, UK, and the eurozone
IMF paper finds Latam growth likely to slow even if commodity prices remain elevated
Growth over next half-decade expected to be 150bp lower than during boom years; need for 'ambitious structural reforms' to secure 'medium-term growth'
Southern African economies appear to be converging
Bank of Botswana economists find SADC countries are moving in the same direction, but probably more by accident than by design
Firm-level characteristics affect monetary policy transmission, Czechs find
Working paper finds firm-specific characteristics like size, age, collateral and profit, affect the way in which monetary policy changes are reflected in the external financing decisions of firms
Paper examines optimal monetary policy for wages and hours worked
Firms tend to pay too little for too many hours, economists argue in ECB-published paper; monetary policy should not target inflation too strictly, they say
Global imbalances still on the rise, IMF paper shows
Though efforts have been made to cut current account imbalances since the financial crisis, ‘stock imbalances' continue to grow, find Milesi-Ferretti and Lane
IMF paper finds ‘robust' relationship between exchange rate flexibility and external adjustment
Using a data set of bilateral exchange rate regimes, study revives Milton Friedman's argument that a flexible rate facilitates external adjustment
US and Europe more vital for Australian trade than thought
Australian goods being exported to western markets indirectly via east Asia, skewing statistics, according to paper using ‘complementary' estimates of value-added trade