Research
Climate analysis likely understates risk, say FSB and NGFS
Study finds scenario analysis struggles to capture more complicated dynamics
BIS publishes database on bitcoin adopters
Evidence suggests speculation is key motive for holding bitcoin, rather than distrust of traditional institutions
Riksbank develops model to stress-test banks’ corporate lending
New model is based on microdata on all Swedish non-financial corporations
BoE paper finds U-shaped collateral impact from central clearing
Centrally clearing all derivatives trades does not necessarily free up the most collateral
US consumers may be listening more to Fed comms, researchers say
Consumer expectations becoming more informative and less sticky, survey data suggests
ECB paper looks at impact of financial channel
Large holdings of foreign-denominated liabilities increases importance of FX moves, paper says
Nominal interest rates strongly affect savings – ECB paper
Simple models based on real rates do not accord with eurozone data, researchers find
Eurozone sovereign downgrades increased corporate risk – ECB paper
Ratings changes for “core” eurozone countries had largest effects on corporate bonds
IMF recommends using reserves ‘prudently’ to offset dollar strength
Floating currencies, IMF precautionary lines and reactivation of Fed swap lines among possible measures
ECB paper looks at Covid-19 emergency supervisory measures
Relaxation of CET1 requirements positively affected lending, but change to Pillar 2 guidance did not
Expectations are key to carbon tax’s impact, says ECB paper
Inflation may rise if consumers doubt government’s commitment to raise green taxes, research finds
Fed paper explores rate hike impact on money markets
Monetary tightening likely to impact flows in and out of Fed’s overnight repo facility
Old people hit hardest by inflation, research finds
Authors find income effects and “Fisher channel” have the biggest impact on Spanish households
IMF paper explores second-round effects of oil shocks
Authors find oil shocks have greater impact where inflation is already high
IMF paper offers ‘fear-based theory’ of economy
Central banks risk distorting the economy if they don’t move interest rates to offset “fear cycle”
Eurozone repo markets are slowing policy transmission, ECB paper says
Dealer banks use market power to get better prices from other institutions
Reverse bond auctions are useful crisis tool, ECB paper finds
DNB’s use of reverse auctions increases liquidity and stability of bill market, researchers say
Big tech firms may suffer from ‘too much information’ – BIS paper
Firms that pry too much into customers’ affairs may find themselves with no business, authors say
BoE paper analyses drivers of price setting
Panel data on UK firms reveals asymmetry in how firms decide to raise prices
Fintech needs better oversight as risks grow, FSI says
Basel-based group sees room for system-level testing and closer scrutiny of tech firms
Housing affordability dropping across the US
Fed’s large rate hikes and constrained housing supply create tough market for buyers
Fed paper explores information problems in financial panics
Tight liquidity can cause investors’ beliefs to become “systematically divorced from fundamentals”
Long-term data can shed light on current inflation – NBER paper
Authors suggest first half of 20th century has clearer parallel to current inflation than 1970s
ECB rate hikes could damage climate change policies, paper finds
Researchers claim tighter financing conditions will hamper transition to capital-intensive green technologies