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Home / Tag Archives: Academic research & research papers

Tag Archives: Academic research & research papers

The impact of the pandemic on cultural capital in the finance industry

Kevin Stiroh of New York Fed in this speech discusses how and whether the pandemic will impact culture in financial industry: From the perspective of cultural capital, this sudden and dramatic shift in how we work raises multiple questions. First, how does cultural capital influence outcomes in this new environment? How are we drawing on, or depleting, the cultural capital that already existed? Does this environment pose new challenges regarding behavioral risk? And finally, is it...

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The second wave of central bank policy innovation

Pierre Ortlieb of OMFIF in this piece: As the Covid-19 pandemic began rippling through financial markets and the global economy earlier this year, central banks quickly unveiled a raft of initiatives aimed primarily at easing short-term liquidity conditions. These policy innovations took place across developed and emerging markets, encompassing new assets purchases, lending facilities and institutional relationships. Many emerging market central banks broke new ground by engaging in...

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Kenya’s digital transformation journey

Dr. Patrick Njoroge, Governor, Central Bank of Kenya in this speech: Digitalization, the theme I have been asked to focus on, has seen us through this difficult period. In the context of the COVID-19 containment measures—and particularly movement restrictions and curfews—digital platforms have enabled our citizens to access financial, health, education and medical services, entertainment, and shop online. In Kenya, the digital rails built over the last fifteen years have been a saving...

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India’s Inflation Process Before and After Flexible Inflation Targeting

Patrick Blagrave and Weicheng Lian in their new IMF research: We study the inflation process in India, focusing on the periods before and after the adoption of flexible inflation-forecast targeting (FIT) in India. Our analysis uses several approaches including standard Phillips curve estimation for headline and core inflation, an examination of the sensitivity of medium-term inflation expectations to inflation surprises, and the properties of convergence between headline and core...

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Monetary policy response in emerging market economies: why was it different this time?

In 2020 crisis, EME central banks were able to cut policy rates despite fears over currency depreciation and capital outflows. Ana Aguilar and Carlos Cantú of BIS in this short paper point how EME central banks could do so: During the Covid-19-induced financial stress in March 2020, central banks in emerging market economies (EMEs) departed from their monetary policy playbook by cutting rates even in the face of sharp currency depreciations and massive capital outflows. Two factors were...

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Crouching Beliefs, Hidden Biases: The Rise and Fall of Growth Narratives

Interesting IMF paper by  Reda Cherif ,Marc Engher and Fuad Hasanov. HT: Manas Chakravarty who reviews the paper in his typical style (link corrected; Thanks Anantha for the pointer). The authors track how and why certain growth terms/factors become fashionable over time: The debate among economists about an optimal growth recipe has been the subject of competing “narratives.” We identify four major growth narratives using the text analytics of IMF country reports over 1978-2019. The...

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Building a Green Yield Curve

SO far, the coloour of finance was seen as either black or red as in profits or loss. Dr Sabine Mauderer of the Deutsche Bundesbank in this speech points that Germany is planning to build a Green yield curve: Germany issued a green bond with a 10-year term for the first time in September, followed by another green bond with a 5-year term last week. Both issues, with a total outstanding volume of € 11.5 billion, attracted huge interest among investors. Looking back at these successful...

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Comparing economics news driven indicators with macroeconomic indicators

Jon Ellingsen, Vegard H. Larsen and Leif Anders Thorsrud in this Norges Bank research paper: Using a unique dataset of 22.5 million news articles from the Dow Jones Newswires Archive, we perform an in depth real-time out-of-sample forecasting comparison study with one of the most widely used data sets in the newer forecasting literature, namely the FRED-MD dataset. Focusing on U.S. GDP, consumption and investment growth, our results suggest that the news data contains information not...

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Inside the regulatory sandbox: effects on fintech funding

Giulio Cornelli, Sebastian Doerr, Leonardo Gambacorta and Ouarda Merrouche in this BIS paper evaluate impact of sandboxes: The rise of fintechs promises to spur competition in the financial sector. This could lead to sizeable efficiency gains, more choice for consumers, and enhanced financial inclusion. However, the potentially disruptive growth of firms offering novel products and services poses new challenges for financial stability and consumer protection. In response, policymakers...

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Central Bank Digital Currency: A Literature Review

Francesca Carapella and Jean Flemming of Federal Reserve in this research sum up the literature so far: Technological advances in recent years have led to a growing number of fast, electronic means of payment available to consumers for everyday transactions, raising questions for policymakers about the role of the public sector in providing a digital payment instrument for the modern economy. From a theoretical standpoint, the introduction of a central bank digital currency (CBDC) raises...

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