Friday , June 18 2021
Home / Tag Archives: Central Banks / Monetary Policy

Tag Archives: Central Banks / Monetary Policy

Specialization in Banking

Kristian S. Blickle, Cecilia Parlatore, and Anthony Saunders in this NY Fed paper: Using highly detailed data on the loan portfolios of large U.S. banks, we document that these banks “specialize” by concentrating their lending disproportionately into one industry. This specialization improves a bank’s industry-specific knowledge and allows it to offer generous loan terms to borrowers, especially to firms with access to alternate sources of funding and during periods of greater nonbank...

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A macroeconomic view of the shape of India’s sovereign yield curve

Michael Debabrata Patra, Harendra Behera and Joice John in this RBI Bulletin article look at one of the contentious issue facing Indian economy: steep yield curve. The sovereign yield curve has a special significance for monetary policy in influencing a wide array of interest rates in the economy. Explicitly integrating macroeconomic variables with latent factors of the yield curve in a dynamic factor model, the results reveal that the level of the yield curve has undergone a downward...

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When should policymakers reach for the history books? Some examples from the 20th century

Catherine Schenk in BankUnderground blog: Since the Great Financial Crisis started in 2007 there has been renewed interest in using the past as a basis for policy responses in the present, but how useful is history and how is it best used? Certainly, the old chestnut that ‘those who neglect the past are sure to repeat it’ is a valid warning, but how to select the appropriate historical examples and draw the right lessons is a more nuanced exercise that is explored in this post....

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10 questions and answers about the distributional effects of monetary policy

Björn Andersson, Mikael Apel and Iida Häkkinen Skans of Riksbank (Sweden central bank) in this paper look at 10 questions around distributional aspects of mon pol: Income disparities have remained roughly unchanged since 2015, but have increased in the longer term. The increased income disparities are due to the incomes of those who are not working having increased much less than wage incomes, while capital incomes have increased significantly for those with the highest incomes. The...

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CBDCs beyond borders: Allowing tourists to use CBDC?

Raphael Auer, Codruta Boar, Giulio Cornelli, Jon Frost, Henry Holden and Andreas Wehrli in this BIS survey: Central bank digital currencies (CBDCs) could ease current frictions in cross-border payments – and particularly so if central banks factor an international dimension into CBDC design from the outset. Based on a survey of 50 central banks in the first quarter of 2021, this paper explores initial thinking on the cross-border use of CBDCs. While most central banks have yet to take a...

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“Crime and Punishment”: How Russian banks anticipated and dealt with global financial sanctions

Mikhail Mamonov, Anna Pestova and Steven Ongena in this voxeu research: Financial sanctions against Russia’s state-owned and controlled banks were imposed consecutively between 2014 and 2019, allowing banks that would potentially be targeted in the future to adjust their international and domestic exposures. This column explores the informational effects of financial sanctions, showing that compared to similar private banks, ‘not yet sanctioned’ financial institutions immediately...

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Banking regulation lessons from Jet flights and mail bags

Fed Vice Chair for Supervision Randal Quarles draws banking regulation lessons from flights and mail bags: As many of you know, I am speaking to you from Salt Lake City, which, among its myriad other virtues, was the home of one of the earliest passenger airlines-Western Air Express, which ran its first passenger flight in the spring of 1926: Eight hours in a Douglas M2 between Salt Lake City and Los Angeles, with one stop in Las Vegas for fuel. Two of the first passengers sat on the...

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Education Loan NPAs in Tamil Nadu: Issues and Challenges

Shromona Ganguly and Deepa S. Raj in this RBI Occassional Paper series: The study examines determinants of default in education loans in Tamil Nadu, a state with significant presence in education loan disbursal in the country. It uses account level data of over two lakh borrowers from two public sector banks and one private sector bank in an attempt to identify significant predictors of default. Empirical analysis suggests that loan accounts with higher interest rate and of lower...

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The Economic History Podcast

Seán Kenny, Postdoctoral fellow at und University Sweden has started a superb podcast on economic history. The Economic History podcast is a platform for sharing knowledge, ideas and new research with a general interest audience. Each fortnight, we meet leading academics in the field and discuss a range of topics, including pandemics, long run economic growth, gender issues, financial crises, inequality, sustainable development and a number of weird and fun economic experiments in...

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