Research
BoE: home equity withdrawals rising but still negative
Bank of England paper shows that house equity withdrawals remain negative despite recent upswing in equity extraction
IMF: credit markets key to economic recovery
IMF study shows that a healthy financial sector is essential to a speedy recovery in the economy
RBA goes back to class
Reserve Bank of Australia paper shows that ‘learning’ component makes up for short comings of rational expectations model
BoE study justifies interest-rate cuts
Bank of England research finds rate cuts warranted as risks of high rates outweigh the cost of short term inflation
Boston Fed measures effect of equity extraction on consumption
Boston Fed research shows equity extraction as significant driving force for consumption during US housing boom
IMF: global inter-connectedness aggravated recession
IMF paper shows global interconnectedness increased output volatility during recession as trade-dependent economies were worst hit
SNB tackles too-big-to-fail
Report by the Swiss National Bank suggests countries biggest banks will need to downsize
Philly Fed: banking sector returns to profit
Report for fourth quarter notes bank failures also dropped
Finnish central bank offers pessimistic outlook for growth
Bank of Finland report forecasts anaemic growth in 2010 following continued declines in exports sector
IMF: Bolivia foreign reserves adequate
Research charts developments since 2005
ECB: financial distress levels higher in Northern European countries
ECB paper finds financial distress is dependent on the relative indebtedness of households and mortgage market size
IMF calls for originators to have more exposure to tranches
Study shows that exposure to securitised loans does not imply risk-neutral behaviour
Turkey tests new policy on checking accounts
Study by Turkish central bank rejects new policy to increase payment fees for checking accounts
Fed: macro models ignored lower bound of yield curve
San Francisco Fed constructs an augmented version of macro-finance model following financial crisis
Fed: smaller optimal weight should be placed on rental price inflation
San Francisco Fed paper suggests that nature of rental prices warrants change in the way inflation is measured
Turkish study shows economic impact of oil shocks
Central Bank of Turkey paper shows that oil prices have similar impact both globally and on small oil-importing economy
Bank explains UK housing bubble
Bank of England study links rising house prices to lower real long-term rates and lower inflation in the run up to the bubble
RBA: price stickiness overstated in traditional models
Reserve Bank of Australia study shows New-Keynesian Phillips Curve overstates the degree of price stickiness in macro models.
Bank of Canada adapts Black-Scholes model
Bank of Canada uses an adaptation of the Black-Scholes to forecast foreign exchange risks between the US and Canada.
Extra-euro trade growth tops intra-euro trade
Latest trade consistency exercise shows that Extra-euro dominates intra-euro growth in the last decade.
BOE paper: inflation co-movement linked to globalisation
New study into co-movement in inflation across industrialised countries links low-inflation rates to falling commodities prices
Exercise caution with Okun’s law: Bank of Canada paper
Research from the Canadian central bank shows recent evidence does not conform to the original specifications of relationship between output and unemployment
BoJ study: low rates not enough
Bank of Japan study shows that low interest rate commitment was insufficient in stimulating growth
Fed: safety net is too big
Richmond Federal Reserve research flags dramatic expansion of safety net