Research
ECB corporate QE also transmitted through bank lending – ECB research
Spillover effect independent from banks’ balance sheet quality
‘Non-salient fees’ matter for mortgage pricing – BoE paper
Many borrowers appear to be less sensitive to fees than to interest rates, and firms exploit this
Shared supervision can help avoid ‘capture’ – BoE paper
Dividing tasks across agencies can lead to better outcomes by avoiding “supervisory capture”
High public debt hampers fiscal stimulus in eurozone – Bank of Portugal research
High debt deepens crises, increases spillover effects and cuts scope for counter-cyclical fiscal policy
Machine learning can produce better forecasts – RBI paper
ML tends to outperform standard models, but combining forecasts is best, authors say
IMF research flags urgent need for climate policy framework
Co-ordination of fiscal, financial and monetary instruments will be needed, say authors
BIS paper tracks new channel for funding ‘dry-ups’
A squeeze in one market can spill over to institutions with no direct exposure, authors find
Bank of Israel research derives growth estimate from survey data
Researchers construct real-time indicator that can be produced earlier than nowcasts
BoE paper models exchange rates with private money creation
Uncovered interest parity does a poor job of explaining exchange rates on its own, authors say
Eurozone needs low-risk asset, ECB paper says
New asset would allow banks to change holdings of sovereign bonds, researchers argue
Households respond more forcefully to rate cuts than QE – Dallas Fed
Fed should improve communications for QE and forward guidance, researchers say
FDIC could reduce resolution costs by 17% – Bank of Canada paper
Eliminating uncertainty over auction process could reduce multiple bidding, researchers say
Asset bubbles play role in macro-prudential policy – IMF research
Their size may determine optimal tax levels to address credit imbalances
Brexit may have cost the UK 5% of productivity – BoE paper
Study draws on newly developed survey of decision-makers at UK firms
Inflation edges higher as Fed prepares for next meeting
Consumer spending boosts economy, but recent sentiment data suggests it could be about change
Fears about eurozone countries weigh on credit creation – research
Perceptions of weakness at individual banks are less important – Bank of Portugal paper
BIS paper studies spread of global currency trading
Authors examine “patterns of diffusion” to understand rise of the renminbi
Negative rates could lower inflation expectations – San Fran Fed paper
Japanese inflation expectations fell after BoJ introduced negative rates, researchers find
BdF paper looks at FOMC hawks and doves
Predictions of rate-setters with hawkish reputations often biased towards higher inflation – researcher
Market competition fuels volatility in frail regulatory environments – Bank of Spain research
Increased instability associated with higher default rate triggers a 3.3% loss of output
Economists publish ‘crash course’ on euro crisis
Brunnermeier and Reis say framework is designed to help students grasp the macro-financial roots of recent crises
Prices more responsive in longer buyer-seller relationships – NY Fed paper
Pass-through of exchange rate shocks could decrease during recession, research finds
Interbank rate uncertainty raises cost of credit – ECB paper
“Novel measure” helps authors judge effect of disruptions to interbank markets
Estonian paper looks at Eastern European credit
Lack of competition in banking sectors is fueling pro-cyclical credit creation, researchers find