Research
Monetary policy in preventing boom-bust housing cycles
Bank of Canada paper argues that central banks should react less to inflation and more to output to avoid making boom-bust cycles worse
Fed behaviour matches optimal target rule
A discussion paper on the Fed and monetary policy rules argues that an optimal target rule, rather than the Taylor rule, best explains the central bank’s policy behaviour
Unconventional policy affects both sides of balance sheets
Bank of Japan looks at the size and composition of its balance sheet during its quantitative-easing period
Fiscal stimulus crucial for recovery
Centre for Economic Policy Research (CEPR) compares the Great Depression with the global credit crisis
Linking banks, bonds, and firm size
San Francisco Fed paper builds a model to see the effects of bank vs. bond financing on firm size
New household inflation measures yield “novel finding”
San Francisco Fed paper finds a negative correlation between inflation and inflation inequality
Finance and real economy closer since 1980s
European Central Bank looks at the role of financial markets in anticipating business cycle developments
The relationship between money, credit and policy
A new paper finds evidence that the relationship between money and credit changed after the second world war
IMF to Hong Kong: beware of bubbles
International Monetary Fund looks at the potential macroeconomic implications for Hong Kong of accommodative monetary policy in the United States
The relationship between deregulation and firm volatility
Federal Reserve paper finds evidence from the 80s suggesting volatility declined as a result of interstate deregulation
Zero lower bound may have cost US $1.7 trillion
San Francisco Fed’s John Williams argues zero bound on interest rates has had negative effect and could continue to do so
Take time to revise international financial architecture
Central Bank of Argentina believes reform of international financial architecture can wait until crisis abates
Base countercyclical provisioning on expected losses
Bank of Italy looks at Spanish dynamic provisioning
Accounting overstates banks’ health: IMF paper
International Monetary Fund research finds banks not as healthy as their balance sheets suggest
Foreign demand for currencies and the Friedman rule
A new paper from two economists at Columbia University finds that the Friedman rule ceases to be Ramsey-optimal when foreign demand is taken into consideration
A quarterly GDP series for post-WW2 New Zealand
A new paper from the Reserve Bank of New Zealand creates a quarterly GDP series for the post-war economy
Instability hampers finance: IMF
International Monetary Fund looks at market access for the world’s poorest countries
A model to analyse stability
Reserve Bank of New Zealand paper details the development of a cobweb model that will be used in its Financial Stability Report
Monetary policy impacts effect of fiscal aid
Kansas City Federal Reserve studies the interactions between monetary and fiscal policy
Gold standard did Scandinavia good
Norges Bank examines monetary policy and inflation dynamic of the Scandinavian Currency Union
Evaluating economy-wide risk measurement tools
Bank of Canada paper acknowledges useful information exists on credit risk models, but argues further work is needed
Woodford unveils new model for transmission mechanism
New York Federal Reserve paper co-authored by Michael Woodford introduces a new model for monetary policy which considers the effects of unconventional policy
Price volatility lower in inflation-targeting countries
Reserve Bank of Australia compares inflation volatility in inflation-targeting and non-inflation-targeting countries
Evaluating monetary policy
Risksbank’s Svensson on the difficulties of measuring the right rate for inflation targeting