Research
Dallas Fed research says housing bubbles are ‘brewing’
Housing price expectations may have unanchored from fundamentals, paper finds
RBI paper finds high market power can undermine bank stability
Author documents “inverse U-shaped” relationship, suggesting only some mergers are desirable
CCP collateral regulation could limit procyclicality – BoE paper
Requiring CCPs to reinvest cash collateral can help reduce procyclicality during stress, authors find
BIS paper finds benefits from ‘deconstructing’ ESG scores
“Best-in-class” strategy can overcome problems with other approaches, authors say
Reciprocity can curb macro-prudential ‘leakages’ – BIS paper
But gains can be small, which may explain limited use of reciprocity to date, authors say
‘Financial concerns’ impact consumption – BoE paper
Households with financial worries have a higher marginal propensity to consume, survey shows
Central banks can lean against fiscal dominance – BoC paper
Authors find monetary policy works better when conditional on fiscal policy
BIS paper estimates slack in Mexico’s informal labour market
Calculating Nairu is challenging given large unregulated sector, authors say
BIS paper finds real links matter for asset price co-movement
Real economic integration may be more important than previously thought, authors say
IMF paper finds falling r* should eventually reverse
Authors say several policies could be used to push natural rate back up
US core inflation much higher than eurozone’s, says ECB
Central bank points out differences in inflation dynamics across the Atlantic
Emerging market stock returns impacted by dollar – BIS paper
US dollar can drive local financial conditions in equities as well as other markets, authors say
BoC paper highlights ‘profound impact’ of heterogeneity
Confluence of factors has pushed heterogeneity into the forefront of economic research, authors say
BIS paper highlights money markets’ impact on real economy
Central bank liquidity interventions can prevent large drops in output, authors find
BIS paper challenges standard theories of term structure
“Expectation errors”, not term premia, create biased predictions of short-term rate – researchers
‘Flood’ of reserves may not boost liquidity, say Acharya and Rajan
Central bank balance sheet expansion could harm liquidity in some cases, former RBI officials find
Only some firms pay attention to economic news – Bank of Canada paper
Attention is “polarised and counter-cyclical”, affecting policy impact, researchers find
Monetary policy impacts financial stability – BIS paper
“Leaning against” booms may be better goal than strict inflation targeting, say researchers
Banks can exploit imperfectly informed investors – BIS paper
Some banks gain additional funding from investors who underestimate their credit risk, analysts find
Bank of Canada pilot explores transitional risks of climate change
Six financial institutions joined the central bank and financial regulator in auditing their assets
Brazilian banks use market power to raise cost of credit – BIS paper
Research explores role of market power and informational switching in banking competition
Frequency of price changes strongly correlated to inflation, says Riksbank
The size of price increases remained stable in Sweden from 2010–18
BIS paper calls for action on big tech dominance
“Digital platforms” can boost inclusion but may undermine other central bank objectives, authors say
Google data offers real-time indicator of business closures, says BoC research
Google Places database can reveal whether businesses are gone for good or just “hibernating”