Research
Labour market news matters for business cycle – BoE paper
Findings suggest previous focus on productivity is too narrow
Bank of Canada paper proposes ‘expiry date’ on offline CBDC
CBDC could have expiry date to help consumers recover lost money, authors say
BIS paper says investors can cut carbon footprint ‘with relative ease’
Passive investors can achieve substantial carbon reduction with simple approach, authors say
BoE paper warns of ‘non-standard errors’
Researchers may introduce additional errors to data samples through their analysis
IMF paper emphasises importance of carbon pricing
Authors say carbon tax would be “more efficient and easier to administer” than other options
Crypto markets may centralise power – BIS bulletin
Need for centralisation is “inescapable” despite crypto boosters’ claims to the contrary – researchers
Trade credit helped amplify initial Covid-19 shock – BdF paper
Net borrowers of trade credit faced sharper liquidity squeeze, researchers find
BdF paper looks at use of capital controls and foreign reserves
Many countries combine both to moderate effects of international capital flows
RBA says DLT network is viable option for wholesale CBDC
Project Atom proved wholesale CBDC issued over DLT network reduced risk and improved efficiency of loan payments
Monetary policy’s potency may wane over time – BIS paper
Low rates might cause aggregate demand to become less sensitive to monetary stimulus, authors say
Eurozone QE helped increase R&D spending, paper finds
Firms that had bonds bought by the ECB increased R&D spending by 9% on average
BoE paper links inequality to credit crises
Central banks will redistribute resources whether they act or not, authors say
Fed's monetary policy ‘spillbacks’ have significant effects – ECB paper
Researchers estimate how impact of Fed policy on foreign economies in turn affects US
Financial crises can radicalise voters – BIS paper
German banking crisis in 1931 contributed to the rise of the Nazi party, researchers find
ECB paper examines exchange rates and household consumption
Exchange rate elasticity of household consumption driven largely by industrial goods - researchers
BIS statistics: OTC derivatives market value back to 2019 levels
Gross market values have fallen about a fifth since second half of 2020
‘Bullwhip effects’ worsening supply problems – BIS bulletin
Direct inflationary impact likely to be limited, but “sustained pressures” are possible, economists say
BIS paper flags ‘notable gaps’ in CBDC research
Policy work on cross-border CBDCs is “marching beyond the research frontier”, say economists
GDP-linked bonds unlikely to ‘tame debt’ – BdF paper
Linking sovereign bonds to GDP would not necessarily improve debt ratios, researchers find
Central bank signals could be impacting natural rate – BIS paper
“Learning process” could explain decline in interest rates without drop in productivity, authors say
Riksbank studies link between equity prices and interest rates
Measures that do not directly account for interest rates can better explain historical prices
Mobile money was ‘crucial’ for low-income countries during the pandemic – IMF
Data shows mobile and internet banking transactions grew for all income levels
Central banks must address personal data risks, says BIS paper
Regulators must upgrade response to risks caused by tech firms’ use of data
Biden stimulus will cause small, short price spike, says paper
San Francisco Fed predicts American Rescue Plan will boost inflation by 0.3%