Research
BIS paper sees fintech creating ‘barbell’ market structure
Authors say regulators should take action as digital innovation drives changes in market structures
Paper analyses eurozone consumers’ inflation expectations
Short-term views, trust and Covid-19 shaped medium-term expectations – Bank of Finland paper
UK financial sector slowly improving on diversity – BoE paper
Research shows women are gaining a foothold, but progress with age and nationality diversity has stalled
BoE paper explores impact of machine learning on credit
Benefits of AI-driven screening depend on market characteristics, authors find
Unemployment has non-linear relationship to inflation – Fed paper
Authors say their findings could be relevant to debates over inflation targets
Stress tests may be poor guide to capital levels – BIS paper
Authors develop model of how “noisy” tests may cause problems for regulators
BdF paper analyses inflation tolerance ranges
Ranges “should not be zones of inaction” and may have unfavourable trade-offs, researchers say
BoE paper models impact of ‘active’ fiscal policy
Active fiscal policy complicates monetary policy but can generate higher welfare, author says
ECB paper investigates macro-pru’s impact on inequality
More research is needed on how borrower-based measures affect income inequality, researchers say
UK household debt has not yet amplified Covid shock – BoE paper
But the share of households reporting financial difficulties is now rising, authors note
Bank of Italy paper uses agent-based model of housing market
Limits on borrowing are effective but not currently needed for Italian housing sector
Shadow banking changes macro-prudential trade-offs – BdF paper
Presence of non-banks increases importance of dynamic capital ratios, researcher argues
Dallas Fed: credit conditions improved for most in 2020
Study of Texas finds communities with more immigrants saw fewer benefits
Riksbank publishes analysis on QE
Work aims to add transparency and offer evidence on questions of design and implementation
‘Fiscal distress’ can reverse exchange rate dynamics – BIS paper
Authors emphasise “contingent nature” of exchange rate response to shocks
‘Contagious zombies’ menace German economy – Bundesbank paper
ECB’s policies have increased flow of credit to “non-viable firms”, researchers say
Research urges ECB to consider establishing ‘fossil bank’
Entity would play similar role to ‘bad banks’ established after financial crisis
Covid-19 caused steep decline in SME turnover – BoE research
Government support stemmed collapse but younger firms suffered
Economists win prize for agent-based forecast model
Authors say theirs is the first agent-based model to produce competitive economic forecasts
Sarb paper questions assumption that government debt is low risk
Banks may need to reduce exposure to sovereign debt instruments as fiscal risk rises
BoE says stablecoins must be as trustworthy as commercial bank money
Stablecoins may require tailored regulation and access to emergency liquidity facilities, paper says
‘Preventive restructuring’ reduces unnecessary bankruptcies – BdF paper
Researchers compare data from French preventive restructuring and traditional bankruptcy systems
RBI faces dilemma from US policy spillovers – BIS paper
Authors highlight evidence of “contractionary devaluation” when US monetary policy tightens
Inequality can worsen recessions – BIS paper
But authors say there is little evidence that income inequality affects consumption in normal times