Research
Composite indicator shows Swedish banks' systemic importance varied through crisis
Riksbank research finds large time-based variations in the systemic importance of Sweden's four biggest banks before, during and after the financial crisis
IMF working paper examines tools to measure interconnectedness
Network analysis and price-based measures are both used to measure interconnectedness in systemic risk; paper finds many tools can reduce systemic risk, but interaction is not clear cut
RBNZ bulletin tackles inflation, macro-prudential policy and reserve bank capital
Latest issue of Reserve Bank of New Zealand's bulletin examines why inflation has remained low despite healthy economic growth
Fed paper models monetary and fiscal policy interdependence
Working paper analyses interdependence between monetary and fiscal policy-making, testing policy experiments and finding a ‘non-negligible’ interaction between the two
US monetary policy weakened by fees and interest changes, paper finds
Research finds payment of interest on excess reserves and higher fees on uncollateralised overdrafts boosted efficiency but damaged the Federal Reserve’s monetary policy
ECB paper develops macro-pru tool probing impact of sudden capital outflows
Results show limited impact of a liquidity shock on banks' solvency ratios in the short term, but ‘moderate to high' effect on the supply of credit to the broader economy
Fedwire data can give accurate picture of interbank fed funds market, paper shows
NY Fed researchers find Fedwire-derived data on fed funds borrowing are strongly correlated with the figures subsequently reported by banks
IMF paper discerns East African transmission mechanisms
Transmission mechanism ‘functions best' when signals are clear and the monetary regime simple and coherent; non-monetary factors are ‘main drivers' of macroeconomic outcomes in examined countries
ECB paper says regional macro-prudential tools would mitigate eurozone imbalances
Macro-prudential tools such as loan-to-value limits could help prevent imbalances between the eurozone core and periphery if applied on a regional basis, according to ECB research
US fiscal stance is creating inflation, says Riksbank paper
Researchers show the existing unsustainable levels of US federal debt are generating inflationary pressures, but these are difficult to spot as they are being dwarfed by Fed policy and economic slack
Rosengren paper tackles role of banks in monetary transmission
Boston Fed president presents evidence on the effectiveness of the bank lending channel and provides observations about likely consequences of changes associated with the financial crisis
Australian sovereign bond market infrastructure developments analysed
Reserve Bank of Australia article provides an overview of the CBS market and assesses recent changes in the market infrastructure
BIS papers probe LatAm currency interventions
Working papers written by economists from each of five Latin American central banks and published by the BIS investigate the efficacy of various currency intervention strategies
Hungarian economists wary of foreign bank branches
Researchers are concerned that a shift away from foreign bank subsidiaries to branches increases the risks of inadequate supervision and threatens financial stability both at home and abroad
BIS research dismisses fears over high-quality asset shortage
Article says increase in high-quality assets appears sufficient to meet rising demand, but risks could still come from elsewhere
BIS research finds capital requirements had minor impact on bank lending
Quarterly review article presents evidence that banks have adjusted to higher capital requirements mainly via retained earnings, rather than by cutting lending, with less of a macroeconomic impact
BoE economist creates ‘nowcast' composite from global indicators
Combined indicator weights global indexes such as PMI and CPB world trade to ‘nowcast' world economic activity more accurately than before
Eurozone inflation and output do move in step, says IMF working paper
Researchers argue co-movement of inflation and output is observable in the eurozone at ‘business cycle frequencies', confirming New Keynesian models to demand shocks
Near-zero interest rates of limited help to non-financial firms
BIS quarterly review article finds that lesser pass-through is partly related to higher premium for risk required by financial intermediaries
Reserve Bank of Fiji adviser targets 5% growth
Lorraine Seeto believes the Fijian economy can grow by 5% each year; highlights the need for more investment, more exports, and a low and stable inflation rate
Dallas Fed highlights transformation of FOMC statements over past 20 years
Before 1994, markets were left in the dark over interest rate changes; statements have expanded seven-fold in the past 20 years, reflecting the evolution of monetary policy operations
BoJ paper: ‘Sudden stop' central factor in recent financial crises
Guillermo Calvo argues 'sudden stops' help explain a number of issues which conventional monetary policy fails adequately to address
Bank of Finland publishes research overview
Newsletter highlights research on bank-sovereign feedback loops, information costs and their effect on investment and financial liberalisation in China
Temptation preferences can inform asset pricing, Fed researchers find
According to San Francisco Fed paper, self-control preferences have important implications for macroeconomic issues, such as social security reform, income tax reform and asset-pricing issues