Research
NY Fed: capital structure best left to the market
New York Fed research supports view that some degree of leverage may ensure appropriate bank behaviour
Moral hazard not contained prior to crisis: Norges Bank paper
Norges Bank paper co-authored by Bank for International Settlements' Claudio Borio points to lessons from the Nordic experience
Debt to reserve ratio key indicator of country default: World Bank research
World Bank paper identifies ratio of debt to reserves as most important indicator of sovereign default
Banks’ role to be reduced in future financial system, IMF says
IMF position note says non-bank financial firms will see roles expand; IMF must refine its methods and broaden its view to keep up with changes
RBI: India’s reforms strengthened purchasing power parity
Reserve Bank of India paper says 1990s liberalisation policies helped stabilise purchasing power parity
Bank of Canada on inflation expectations
Bank of Canada Review features articles on targeting inflation expectations, rate pledges and using monetary policy to tackle imbalances
Regression analyses should use more growth variables: ECB
European Central Bank research says accuracy of partial coefficients in small models not clear
High public debt will choke long-term growth: ECB
European Central Bank paper finds debt to GDP ratio of 70% enough to drag growth down
Decomposing the education wage gap
Atlanta Federal Reserve paper adds to plethora of research on link between education and wages
IMF investigates spread of Islamic finance
Fund research uncovers five factors influencing diffusion of Islamic finance
Atlanta Fed on dual labour markets
Income inequality may be exacerbated by firing costs, Atlanta Federal Reserve research argues
IMF: central bank independence unrelated to politics
Fund study shows that political factors do not figure in central banks’ independence and effectiveness, but key for budgetary institutions
Central Bank of Luxembourg: banks pass stress tests
Central Bank of Luxembourg study shows local banks’ tier one capital buffers are sufficient to weather macroeconomic shocks
BoC: contingent capital must supplement counter-cyclical capital buffers
Bank of Canada study says contingent capital more effective in providing liquidity to banks in a crisis
IMF: East African countries have divergent financial barriers
Fund study finds more advanced members of East African Community have lower financial barriers than others
IMF: commodity shocks explain variation in Latin American fiscal positions
IMF study finds impact of commodity price volatility on government revenue in Latin America linked to fiscal standing
IMF: bond issuance creates more effective monetary policy channel
IMF study says government bond issuance can help mop up excess liquidity, making monetary policy more effective
BoJ on dollar’s “exorbitant privilege”
Bank of Japan research notes that with great privilege comes great responsibility
ECB paper: global finance has little impact on Mediterranean
Real economy, not finance, impacts Mediterranean, research published by the European Central Bank posits
HKMA: Australia’s investment-led deficit well balanced
Hong Kong Monetary Authority study shows that current account deficits are not always a bad thing
NY Fed: emergency dollar swap lines a success
New York Federal Reserve study says dollar swap facilities provided effective source of funding to banks during financial crisis
Bank of Israel: riskier firms still turn to banks for funding
Bank of Israel study says profitability of firm and size determined method of financing with low profit firms preferring bank loans
IMF: financial stress distorts losses in defaults
IMF study says probability of default measures do not fully account for potential losses
Philly Fed investigates impact of shocks on credit lines
Philadelphia Federal Reserve examines the effect of the subprime crisis on credit lines