Research
Lucas critique & the stability of empirical models
This Federal Reserve Bank of Richmond Working Paper, published 14 August, re-considers the empirical relevance of the Lucas critique using a DSGE sticky price model in which a weak central bank response to inflation generates equilibrium indeterminacy.
ECB paper on the European corporate bond market
The ECB Occasional Paper "Implications for liquidity from innovation and transparency in the European corporate bond market" offers a new framework for the assessment of financial market liquidity and identifies two types: search liquidity and systemic…
IMF paper on the management of oil wealth
The IMF Working Paper "Management of oil wealth under the permanent income hypothesis: The case of Sao Tome and Principe" documents the protracted process of shaping the rules governing oil operations in Sao Tome and Principe.
Buba paper on the diversification of German banks
The Bundesbank Discussion Paper "Does diversification improve the performance of German banks? Evidence from individual bank loan portfolios" investigates the link between banks' profitability (ROA) and their portfolio diversification across different…
ECB paper on credit risk mitigation
The ECB Occasional Paper "Credit risk mitigation in central bank operations and its effects on financial markets: the case of the Eurosystem" reviews the role and effects of the collateral framework which central banks, and in particular the Eurosystem,…
Paper on term structure models and exchange rates
The Bank of Canada Working Paper "Can affine term structure models help us predict exchange rates?" proposes an arbitrage-free model of the joint behaviour of interest and exchange rates.
Paper on European and US sovereign bond markets
The Research Technical Paper "An empirical analysis of transparency-related characteristics of European and US sovereign bond markets" from the Central Bank & Financial Services Authority of Ireland examines transparency-related characteristics of…
Monetary conservatism and fiscal policy
This European Central Bank Working Paper, published 27 July, asks whether an inflation conservative central bank remains desirable in a setting with endogenous fiscal policy.
Central Bank of Solomon Islands - Annual Report 05
According to the Central Bank of Solomon Islands' Annual Report 2005, the domestic economy grew in 2005 as a result of buoyant private sector activities, upbeat investor confidence and strong donor assistance.
IMF paper on lending resumption after default
The IMF Working Paper "Lending resumption after default: Lessons from capital markets during the 19th century" mines the experience of capital markets during the 19th century to propose an alternative way of interpreting international default episodes.
Revised Bank Secrecy Act Manual
A revised "Bank Secrecy Act/Anti-Money Laundering (BSA/AML) Examination Manual" has been issued. The manual, effective 1 August, provides current and consistent risk-based guidance for banking organizations to comply with the BSA and safeguard operations…
ECB paper on fiscal policy in a monetary economy
The ECB Working Paper "Fiscal policy in a monetary economy with capital and finite lifetime" published 27 July develops a dynamic stochastic general equilibrium model with nominal rigidities, capital accumulation and finite lifetimes.
Cross-border bank contagion in Europe
This European Central Bank Working Paper, published 27 July, analyses cross-border contagion in a sample of European banks from January 1994 to January 2003.
IMF paper on inflation forecasting
The IMF Working Paper "The role of seasonality and monetary policy in inflation forecasting" suggests a new econometric approach for jointly determining inflation forecasts and monetary policy stances, particularly where seasonal fluctuations of economic…
RBNZ paper on exchange rate stabilisation
The Reserve Bank of New Zealand Working Paper "How costly is exchange rate stabilisation for an inflation targeter? The case of Australia" quantifies the costs of mitigating exchange rate volatility within the context of a flexible inflation targeting…
Fiscal convergence before entering the EMU
This European Central Bank Working Paper, published 27 July, addresses the question of whether a reduction of public deficits, such as imposed by the Maastricht fiscal criteria, is a necessary or useful step on the road to the adoption of the euro.
Japan - Effects of the quantitative easing policy
The Bank of Japan Working Paper "Effects of the quantitative easing policy: A survey of empirical analyses" surveys the empirical analyses that examine the effects of the Bank of Japan (BOJ)'s quantitative easing policy (QEP).
IMF paper on global imbalances
The International Monetary Fund Working Paper "How Might a Disorderly Resolution of Global Imbalances Affect Global Wealth?" describes the impact on global wealth of an unanticipated shock to U.S. financial markets.
IMF paper on the 2003-05 oil shock
The IMF Working Paper "Weathering the Storm So Far: The Impact of the 2003-05 Oil Shock on Low-Income Countries" examines the impact of the 2003-05 oil price increase on the balance of payments positions and IMF financing needs of low-income country oil…
ECB paper on fiscal policy in a monetary economy
The ECB Working Paper "Fiscal policy in a monetary economy with capital and finite lifetime" develops a dynamic stochastic general equilibrium model with nominal rigidities, capital accumulation and finite lifetimes.
ECB paper on the impact of policy decisions
The ECB Working Paper "The impact of ECB monetary policy decisions and communication on the yield curve" analyses high-frequency changes in the euro area money market yield curve on dates when the ECB regularly sets and communicates decisions on policy…
Monetary policy rules in the pre-EMU era
The ECB Working Paper "Monetary policy rules in the pre-EMU era: Is there a common rule?" analyses the period 1993 to 1998 saying there is no clear agreement regarding the monetary policy pursued in the member countries during the convergence process.
St Louis Fed paper on forex intervention
This Federal Reserve Bank of St. Louis Working Paper "Authorities' beliefs about foreign exchange intervention: Getting back under the hood" presents the results of a survey of monetary authorities with respect to their beliefs about foreign exchange…
IMF paper on policy lessons from Latin America
The IMF Working Paper "Macroeconomic volatility: The policy lessons from Latin America" traces how the history of macroeconomic volatility and financial crisis over the past century has adversely impacted on growth and other development indicators.