Research
IMF: unequal income distribution raises leverage
Fund study shows high income households’ greater bargaining power induces high leverage and financial crises
IMF: financial innovation has spillover effects on public information
Fund study shows financial innovation reduces incentive to collect private information and increases likelihood of liquidity shocks
Bank of Canada to government: cut tax, don’t spend
Bank of Canada study shows tax cuts are better than government spending for boosting the economy
Norges Bank: universal banking enhances development of corporate debt markets
Norges Bank study shows that universal banking model promotes successful securitisation of corporate debt markets
Buba finds advantages in industry specialisation
Bundesbank study finds significant monitoring benefits from specialisation of cooperative and savings banks
Finland identifies source of business-cycle volatility in Hong Kong
Bank of Finland study says loan-to-value ratio and housing preference shocks are main source driving business cycle volatility in Hong Kong
HKMA measures cost of regulatory reform
Hong Kong Monetary Authority finds positive effect from Basel III
White emphasises use of Austrian school in policymaking
Bank for International Settlements former economic adviser William White says use of Austrian school assumptions about the financial system could help prevent further crises
BoJ: liquidity strains alter investor behaviour
Bank of Japan study shows investors sell or buy a liquid asset more quickly in distressed environments
Buba’s Böhmler: ongoing education vital to central banks
Bundesbank executive board member Rudolf Böhmler says education will keep staff up-to-date on advances in finance
Norges Bank: co-op loans less salient
Norges Bank study shows salience of co-op loans leads homebuyers to take on more costly borrowing
St Louis Fed: Chinese house prices have minimal effect on savings rate
St Louis Federal Reserve study says rising housing prices in China do not explain the high savings rate of households
Bundesbank: fiscal stimulus contractionary in long term
Bundesbank study shows lump sum debt financing has short-term economic benefits but long-term costs
RBA: China’s thirst for commodities driven by global export market
Reserve Bank of Australia study says China’s demand for resources is largely driven by developments in international not domestic markets
IMF: budget responsibility laws do not guarantee improved fiscal policy
Fund study shows fiscal performance is not enhanced by institutions on budgetary responsibility
Canada calls for holistic approach to regulation
Bank of Canada study says regulators must consider capital, liquidity and short-term liabilities jointly when addressing systemic risk
IMF: dollar volatility influences Gulf risk premia
Fund study shows US inflation and consumption drive risk premia in Gulf Cooperation Council countries
SNB: immigrants reduce seigniorage
Swiss National Bank study shows increase in immigration reduces seigniorage for banknotes
SNB: rich nation imports deskill developing economies
Swiss National Bank says trade with richer nation depresses relative wage of skilled workers in less developed countries
IMF: policy prescriptions for Asean 5 economies
Fund study lays out strategy for fiscal retrenchment in Asean 5 economies
IMF finds persistent debt overhang in Baltic countries
Fund study finds level debt overhang most pronounced in Estonia and Latvia
Italy: Basel II framework left banks defenceless against monetary policy shocks
Bank of Italy study shows higher capital requirements under Basel II did not guard against monetary policy shocks
Islamic finance poses challenges for central banks: Bank of Italy
Bank of Italy study says underdeveloped market for Islamic finance creates problems for central banks and regulators
IMF research finds new method to model asset prices
Fund study uses a logarithmic linear method to compute risk adjustments in asset price models