Research
For-profit CCPs may not hold socially optimal capital – BIS paper
“For-profit CCPs have incentives that are misaligned with financial stability,” author says
Balance sheet normalisation has put upward pressure on borrowing costs – Kansas Fed
Levels of reserves still influences borrowing costs despite post-crisis monetary policy framework
CBDC is mixed bag for financial stability – Bank of Korea
Central bank paper highlights stability concerns but says there are instances within which a CBDC could strengthen stability
Monetary policy must respond aggressively to persistent shocks – BoI paper
Researchers model economy where central bank has less information than private firms
Negative rates could have sped up US recovery – San Fran Fed paper
Output gap could have been reduced by as much as half compared to actual figures, researcher says
Unconventional policy should be used rapidly – Fed paper
Researchers find 20–50% chance that US will face zero lower bound in next decade
ECB policy affects Eastern European economies – Bank of Italy paper
Researcher uses “shadow interest rate” methodology to measure monetary policy spillovers
Kristin Forbes urges academics to focus on macro-prudential policy
Our understanding of the tools and ability to spot new risks remain limited, professor says
‘Global inflation gap’ points to slack across advanced economies – paper
Authors find no evidence that inflation is “on the brink of surging ahead”
Capital requirements impact collateral demands – BoE paper
Higher capital requirements can make banks demand more collateral, authors find
BIS study asks whether central bank crisis actions de-risk the balance sheet
Authors study whether a central bank can influence its own risk, or if this is “wishful thinking”
Ageing population is deflationary – HKMA paper
Deflationary pressures “should not be ignored”, economist says
QE reduces inequality over medium term – Bank of Canada paper
Eurozone inequality rose after QE introduced but then fell, researchers find
Central bank comms affect long-run uncertainty – BoE paper
BoE’s inflation report has effects on long-run bond yields, paper finds
Danish krone rate has limited impact on current account – research
Household savings have a far larger effect, central bank says
Latin America has 66% more fintech startups than in 2017 – IDB
IDB report also reveals the region has a higher proportion of female founders than global average
Tighter US capital ratios eased inequality – Bundesbank paper
Richer households’ incomes fell while Fed’s easing cushioned effects on middle and low earners
BoE paper studies CoCo effects in ‘one-shot game’
Game theoretic approach suggests CoCos cut risk-taking in certain circumstances
Riksbank’s negative rates successfully passed through to economy – research
Findings contrast with recent work by Larry Summers and co-authors
Paper proposes ‘re-engineering’ US statistics
System for compiling statistics is dated and overly complex, authors say
Crypto assets hobbled by proof of work, finds BIS economist
Raphael Auer says bitcoin payments could take “nearly a year” to become truly final
Innovation prompts firms to hold more cash – IMF paper
Firms must hold enough liquidity to insure against risky research and development
Establishing the Fed worsened the Great Depression – St Louis Fed paper
Setting up lender of last resort reduced banks’ incentive to manage risk, paper argues
Fall in technology use helped slow Canadian productivity, BoC paper finds
But slowdown in labour productivity began eight years before fall in technology use – researchers