Research

Central banks partly to blame for crunch

The creation of excessive global liquidity by key central banks was one of a number of phenomena that led to the current financial crisis, says Willem Buiter, a former member of the Bank of England's monetary policy committee, now an economics professor…

Renminbi's behaviour influences whole region

Since the exchange rate reform in July 2005, fluctuations in the renminbi have impacted the movement of other Asian currencies, research published by the Hong Kong Monetary Authority (HKMA) finds.

Global slowdown may hamper US deficit financing

It may be harder to continue financing United States current-account deficits on such favourable terms if the recent wave of financial globalisation were to subside, research published by the New York Federal Reserve finds.

Research shows dollarisation and rates link

Since the adoption of inflation targeting and a floating exchange rate in 1999, real interest rates in Brazil have fallen as levels of dollarisation in the economy have dropped, research published by the International Monetary Fund finds.

Pacific Island SWFs hampered by mismanagement

Little integration with budgets, institutional weaknesses and inadequate controls have hindered the performance of sovereign wealth funds run by the authorities in Pacific Island countries, research published by the International Monetary Fund finds.

IMF template reduces exchange rate volatility

The adoption of the International Monetary Fund's International Reserves and Foreign Currency Liquidity Data Template leads to a fall in exchange rate volatility, research published by the Fund finds.

Currency flexibility needed for China's success

China will need exchange rate flexibility and, eventually, convertibility with open capital markets if it is to carry on succeeding as a large and diverse economy, says Maurice Obstfeld, an academic based at the University of California, Berkeley.

Renminbi revaluation would help dampen inflation

An appreciation of the renminbi against the greenback should lead to the Chinese authorities having more control over inflation, but would have little effect on the size of the United States trade deficit, says Marvin Goodfriend, an academic based at…

US markets unconvinced by 1980s inflation fall

Financial markets were sceptical of the Federal Reserve's commitment to low inflation even after the period of disinflation in the early 1980s, research published by the Kansas City Federal Reserve finds.

Carry trade returns high but losses heavy

Though carry trades in various Asian currencies tend to outperform major stock markets, there is a relatively high frequency of large negative returns, research published by the Bank for International Settlements finds.

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