Research
Banknote counterfeit threat carries significant social costs, paper finds
Bank of Canada working paper shows central banks are right to ‘actively respond' to the threat of counterfeiting despite the small incidence of fraud, due to the social costs of the perceived threat
Inflation-targeting central banks respond to movements in the Fed funds rate, new research shows
A CPI inflation-based Taylor rule can implement flexible price allocation under some specific circumstances, authors say
ECB researchers find evidence for ‘bank liquidity risk channel' for monetary policy
Non-standard policy at the ECB and the Fed has lowered bank funding volatility and increased the supply of loans, acting as an additional channel of monetary policy transmission
Euro bank lending conditions were ‘softened’ ahead of crisis, ECB paper shows
Authors also found evidence of excessive risk-taking for mortgages loans
No ‘credit crunch' in the Middle East after Basel I, IMF paper finds
Despite higher capital adequacy ratios, banks expanded credit and asset growth, according to new research
Euro area bank lending restricted by sovereign debt exposure, say DNB researchers
There is a direct link between deteriorating creditworthiness of foreign sovereign debt and lending by banks holding such debt, according to a working paper from the Dutch central bank
No ‘significant' correlation between declining bank credit and growth, BIS paper finds
Real exchange rates and public debt, however, show a statistically significantly correlation with recovery
Overlooked global factors have major impact on long-term interest rates, IMF paper says
Research paper says the explanatory power of domestic variables on rates is weak compared with global fiscal and monetary policy stances
Fiscal multiplier tends to double in times of crisis, Bank of Portugal paper shows
The paper analyses the size of short-run fiscal multipliers in both normal and crisis times
Eurozone’s unique policy framework creates communication confusion, ECB paper shows
Political communication has a quantifiable effect on sovereign bond spreads – at least in the short term, authors argue
IMF paper highlights weak monetary transmission mechanism in Vietnam
Vietnam has suffered from higher inflation than other Asian economies over the past five years – despite comparable growth rates
Finance sector balance sheets vital for monetary policy transmission, IMF paper shows
Balance sheet effects are comparable in magnitude to the traditional interest rate channel in transmitting monetary policy, say IMF researchers
Portuguese paper questions efficacy of fiscal policy at zero lower bound
Working paper finds that government and private consumption are substitutes when the nominal interest rate is at the zero lower bound; this reduces impact of fiscal policy on output by a third
ECB paper aims to quantify effect of ‘inertia' in reserve currency use
Researchers say dollar's position as the dominant reserve currency is not insurmountable - but force of habit plays a significant role
Israeli paper examines price-setting behaviour
Research finds that consumer prices in Israel are ‘moderately sticky’ and only change every 6 to 9 months; finds inflation expectations impact pricing behaviour more than actual inflation
Finland economist provides euro crisis ‘view from the north'
Banking union will be key to avoiding a repeat of the eurozone sovereign debt crisis, writes Bank of Finland economist; dealing with the ‘legacy' of weak balance sheets is a ‘key open issue'
RBNZ bulletin examines last crisis through ‘macro-prudential lens’
Article finds that a counter-cyclical capital buffer and changes to the core funding ratio could have been ‘usefully employed’ in 2004 to build financial sector resilience
Norges Bank economists examine motivations behind bank regulation
Staff memo sets out reasons why banking is ‘inherently unstable’ activity; says safety nets can create the need for further regulation
ECB paper considers how to conduct monetary policy without interest rates
Occasional paper studies development of Islamic finance in Europe, including the difficulties inherent in setting monetary policy given that sharia bans interest rates
Monetary policy links to financial stability ‘are not straightforward', says Fed paper
Research paper from Fed's Finance and Economics Discussion Series finds monetary policy and financial stability concerns can be complementary - but the connections are complex
Swedish paper finds benefit in increasing lag-length in VARs
Working paper says it is possible to estimate structural vector autoregressions with long lags and still obtain precise structural predictions
Bank of Italy paper finds women directors improve bank governance
Researchers find that women on bank boards tend to reduce the riskiness of investments, which they say is potentially both an argument for greater gender balance and a factor behind discrimination
Bank of Finland paper attempts to isolate European fiscal multipliers
Research seeks to account for effects of policy co-ordination and business cycles to produce more accurate estimates of European fiscal multipliers
IMF research quantifies distributional damage from fiscal consolidation
Working paper suggests efforts to cut budget deficits in advanced economies have raised inequality, cut the wage income share of GDP and pushed up long-term unemployment