Research
IMF paper finds falling r* should eventually reverse
Authors say several policies could be used to push natural rate back up
US core inflation much higher than eurozone’s, says ECB
Central bank points out differences in inflation dynamics across the Atlantic
Emerging market stock returns impacted by dollar – BIS paper
US dollar can drive local financial conditions in equities as well as other markets, authors say
BoC paper highlights ‘profound impact’ of heterogeneity
Confluence of factors has pushed heterogeneity into the forefront of economic research, authors say
BIS paper highlights money markets’ impact on real economy
Central bank liquidity interventions can prevent large drops in output, authors find
BIS paper challenges standard theories of term structure
“Expectation errors”, not term premia, create biased predictions of short-term rate – researchers
‘Flood’ of reserves may not boost liquidity, say Acharya and Rajan
Central bank balance sheet expansion could harm liquidity in some cases, former RBI officials find
Only some firms pay attention to economic news – Bank of Canada paper
Attention is “polarised and counter-cyclical”, affecting policy impact, researchers find
Monetary policy impacts financial stability – BIS paper
“Leaning against” booms may be better goal than strict inflation targeting, say researchers
Banks can exploit imperfectly informed investors – BIS paper
Some banks gain additional funding from investors who underestimate their credit risk, analysts find
Bank of Canada pilot explores transitional risks of climate change
Six financial institutions joined the central bank and financial regulator in auditing their assets
Brazilian banks use market power to raise cost of credit – BIS paper
Research explores role of market power and informational switching in banking competition
Frequency of price changes strongly correlated to inflation, says Riksbank
The size of price increases remained stable in Sweden from 2010–18
BIS paper calls for action on big tech dominance
“Digital platforms” can boost inclusion but may undermine other central bank objectives, authors say
Google data offers real-time indicator of business closures, says BoC research
Google Places database can reveal whether businesses are gone for good or just “hibernating”
Labour market news matters for business cycle – BoE paper
Findings suggest previous focus on productivity is too narrow
Bank of Canada paper proposes ‘expiry date’ on offline CBDC
CBDC could have expiry date to help consumers recover lost money, authors say
BIS paper says investors can cut carbon footprint ‘with relative ease’
Passive investors can achieve substantial carbon reduction with simple approach, authors say
BoE paper warns of ‘non-standard errors’
Researchers may introduce additional errors to data samples through their analysis
IMF paper emphasises importance of carbon pricing
Authors say carbon tax would be “more efficient and easier to administer” than other options
Crypto markets may centralise power – BIS bulletin
Need for centralisation is “inescapable” despite crypto boosters’ claims to the contrary – researchers
Trade credit helped amplify initial Covid-19 shock – BdF paper
Net borrowers of trade credit faced sharper liquidity squeeze, researchers find
BdF paper looks at use of capital controls and foreign reserves
Many countries combine both to moderate effects of international capital flows
RBA says DLT network is viable option for wholesale CBDC
Project Atom proved wholesale CBDC issued over DLT network reduced risk and improved efficiency of loan payments