Research
Research commends Norges Bank’s stress tests
Group led by former Federal Reserve official says tests are highly innovative, economically sound and largely transparent
Forecasting ability fails to justify rating agencies’ power grab
Rating agencies forecasts “not particularly outstanding” during decades following the Great Depression, Bank for International Settlements paper finds
Fiat money, central banking and the Bank of Amsterdam: Atlanta Fed research
Atlanta Federal Reserve paper uses Bank of Amsterdam example to explore effects of fiat money on central bank functions
Norges Bank paper looks at combining predictive densities
Norges Bank research seeks means to go past point forecasts when combining models
Semi-structural models and inflation forecasting: Bank of Canada paper
Bank of Canada study finds semi-structural models best traditional New Keynesian Phillips Curve, bivariate vector autoregression models at inflation forecasting
Capital flows drive financial imbalances: IMF study
Fund paper says capital inflows are main factor behind financial imbalances, with effects worsened by insufficient oversight
Norges Bank on links between marginal value of cash and firms’ behaviour
Norges Bank research points to impact of marginal value of cash on businesses’ decision making
Monetary policy and the Australian-Kiwi exchange rate: RBNZ paper
Reserve Bank of New Zealand research finds Australian dollar-New Zealand dollar exchange rate incompatible with uncovered interest rate parity after official cash rate adoption
Boston Fed surveys evidence of a credit crunch
Boston Federal Reserve policy brief attempts to understand how supply and demand of bank business loans changed in period following Lehman Brothers’ collapse
Policy reform provided shelter from global storm: IMF paper
IMF research examines how monetary policy reform in Latin America enabled economies there to weather the global financial crisis
Adverse selection in a crisis: Bank of Canada paper
Bank of Canada research examines consequences of negative selection when markets are in turmoil
Macroprudential policy – a literature review
Research reviews latest developments, poses future questions
Chinese house prices overvalued in some places: HKMA research
Hong Kong Monetary Authority study shows prices outstrip fundamentals in some market segments; points to importance of early warning mechanism
Reasons behind offshore bond issuance: BIS
Bank for International Settlements research finds price differentials and access to overseas investors among key reasons to issue paper offshore
Rise in income tax can boost growth: Fed study
Federal Reserve research shows increase in capital-income tax can provide insurance against investment risk and raise overall welfare
Fed reviews use of monetary aggregates in policymaking
Federal Reserve study says use of monetary aggregates should be considered for monetary policy decision making
CEPR: inflation targeting a success in Asia
Centre for Economic Policy Research study says introduction of inflation targeting framework in Asian countries reduced inflation persistence
IMF: global stock markets sensitive to US monetary policy shocks
Fund study finds strong relationship between global stock prices and US monetary policy
Bank of Israel develops new forecasting model
Bank of Israel study develops new forecasting model that uses quarterly data
Norges Bank examines time inconsistency models
Norges Bank study examines methods to model time inconsistency problem in monetary policy over extended period
IMF: EME bond spreads respond to fundamentals, financial stress
Fund study says emerging market bond spreads are sensitive to financial volatility in short run but macroeconomic fundamentals in long run
BIS: access to CDS markets reduces debt financing in Asia
Bank for International Settlements study shows credit default swap trading lowers bond issuance costs
Boston Fed finds evidence of sticky wages
Boston Federal Reserve paper shows that wage adjustments in the United States are very infrequent
Credit card rewards boost spending: Chicago Fed
Chicago Federal Reserve study shows that credit card cash-back rewards can boost spending but effect on total consumption is relatively minor