Research
Macro-prudential tools can boost long-run growth – BoE paper
Authors develop theoretical framework linking financial frictions to long-run growth
Curbing booms could cut carbon emissions – BIS paper
Overheating economies can misallocate resources to carbon-heavy industry, authors find
Black applicants face US mortgage discrimination – Philadelphia Fed paper
Lower approval rate cost Black Americans more than $200 billion between 1994 and 2018
Emerging markets should prepare for higher rates – IMF article
Middle and low-income economies need to anchor fiscal policies after the pandemic is under control
Macro-pru can alleviate stress – Portuguese paper
Co-ordinated macro-prudential and fiscal policies can alleviate credit contractions, paper finds
Capital and liquidity rules work better together, BoE paper finds
Literature review finds having both requirements is better than just one, but “significant gaps exist”
Biden stimulus will not move inflation much – Chicago Fed paper
Research finds most models predict very limited and short-term increases
Covid-19 support may have created “zombie firms” – BIS economists
Policy-makers should impose tighter lending standards and reform bankruptcy law, analysts argue
MMT rests on ‘untested statements’ – Richmond Fed paper
Authors warn that modern monetary theory rests on shaky foundations
Demand for US services likely to rebound- Cleveland Fed survey
Study says US consumers have become more optimistic, except older people
MMFs should increase public debt investment – ECB paper
Regulatory framework for money market funds has “fragilities”, researchers argue
‘Bottom-up’ approach can improve inflation forecasts – BoE paper
Item-level inflation data contains useful information for forecasting, authors find
BIS launches database on Covid-19 monetary policy actions
Data designed to help researchers study “massive” policy response to pandemic
Judicial efficiency improves bank credit – Bank of Italy paper
Banks lend more freely and at lower rates in regions with swifter bankruptcy proceedings
Richmond Fed: is US ready for digital dollar?
Brief argues there are questions to answer before embarking on CBDC
Newspaper text can improve growth forecasts – DNB research
Sentiment index can cut errors in short-term forecasts, study finds
Bank regulation can ease non-bank distortions – BIS paper
Authors challenge common narrative that bank regulation can worsen non-bank instability
Funds’ synthetic leverage should be monitored – Bundesbank paper
Researcher presents new method for assessing one type of risk-taking by mutual funds
Bundesbank paper looks at German inflation expectations
Social media forms less realistic picture of current price levels than traditional news – researchers
Fed chair’s tone of voice impacts stock prices – NBER paper
Study uses deep learning to study variations in tone, finding stocks respond but not bonds
Credit line exposures worsened Covid bank stock crash – NBER paper
Authors suggest “contingent leverage” could be included in stress tests
Firms and consumers form expectations differently – Irish paper
Confidence leads eurozone firms to expect higher inflation, but consumers to expect lower, says research
Pandemic likely to worsen market concentration – IMF research
Authors warn rising market power tends to impair monetary and fiscal policy
Pandemic payout freeze increased lending - BIS paper
Research finds restrictions depressed equities but augmented capital buffers and boosted loans