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Home / Tag Archives: Financial Markets/ Finance

Tag Archives: Financial Markets/ Finance

Will financial conditions be increasingly influenced by the news in Shanghai and Shenzhen alongside New York and London?

Nicole Adams, David Jacobs, Stephen Kenny, Serena Russell and Maxwell Sutton in this Reserve Bank of Australia Bulletin article reviews the developments in Chinese financial system. They point how the Chinese financial system is gradually becoming larger and more open to foreign competition. In near future, news in Shanghai and  Shenzen will influence global financial markets: Risks in China’s financial system remain elevated despite its economy’s strong recovery from...

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Investing in mutual funds? Know the link between size of AUM and returns

Retail investing is rising for both individual stocks and mutual funds. Prof Parthajit Kayal of Madras School of Economics in this financial express article shares some advice for MF investors. He says investors should invest in small sized funds rather than larger counterparts: Academic studies have shown that mutual fund schemes with lower funds or assets under management tend to perform better than the popular mutual fund schemes with a large fund under management. In this article, we...

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50 years of Monetary Authority of Singapore

The list of anniversaries in 2021 keeps growing. 100th birthday of Dr Kurien and 75 years of Amul, 100th birthday of PV Narasimha Rao, 100 years of South African Reserve Bank, 100 years of Tamilnad Mercantile Bank 50 years of Bangaldesh, 30 years of India’s reforms, 25 years of IDRBT, 5 years of Indian Bankruptcy Code, There must be many more which I am missing. In 2018, there were several anniversaries as well. 2021 marks the 50 years of Monetary Authority of Singapore as well Prior to...

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Pofile of Solomon Hsiang, who uses big data to inform climate change policies..

Interesting profile of Prof Solomon Hsiang of University of California Berkeley (pronounced Shung): Solomon Hsiang is a smart man. He listens to his wife. Over breakfast a day or two after the California pandemic lockdown in March 2020, Google researcher Brenda Chen asked a question. Couldn’t her husband’s Global Policy Laboratory at the University of California, Berkeley, shed some light on the world’s fight against COVID-19? “A lab called ‘the Global Policy Lab’ should be able to...

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Monetary and fiscal complementarity in the US during the Covid-19 pandemic

Jagjit S. Chadha, Luisa Corrado, Jack Meaning and Tobias Schuler in this ECB paper analyse the monetary and fiscal policy during the In response to the coronavirus (Covid-19) pandemic, there has been a complementary approach to monetary and fiscal policy in the United States with the Federal Reserve System purchasing extraordinary quantities of securities and the government running a deficit of some 17% of projected GDP. The Federal Reserve pushed the discount rate close to zero and...

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Do Banks Price Environmental Transition Risks? Evidence from a Quasi-Natural Experiment in a Chinese Province

Bihong Huang ; Maria Teresa Punzi ; Yu Wu in this IMF working paper: This paper assesses the financial risks arising from transition toward a low-emission economy. The environmental DSGE model shows tightening environmental regulation impairs firms’ balance sheets, and consequently threatens financial stability in the short term. The empirical analysis indicates that following the implmentation of Clean Air Action Plan, the default rates of high-polluting firms in a Chinese province...

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How Raghuram Rajan, Urjit Patel differ on greening of central bank policies

My new article on Moneycontrol. The two former RBI Governors recently expressed their views on whether and how central banks should address climate change.  The piece sums their views and suggests way forward for central banks. This entry was posted on September 14, 2021 at 9:39 am and is filed under Academic research & research papers, Central Banks / Monetary Policy, Economics - macro, micro etc, Financial Markets/ Finance, Indian Economy/Financial...

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Central bank digital currency: the future starts today

Benoît Cœuré, Head of the BIS Innovation Hub in this speech: Across the world, central banks are coming together to focus on their common mission. Charged with stability, they will not rush. They want to move fast, but not to break things. Consultations with payment systems and providers, banks, the public and a broad range of stakeholders have begun in some countries. To build a CBDC for the public, a central bank needs to understand what they need, and work closely with other...

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Bangladesh at 50: Reflections on Financial Inclusion

CGAP is running a series of articles on 50 years of financial inclusion in Bangladesh: Bangladesh turned 50 this year. Over the decades since its independence, the country has made significant progress on many measures of development, among them financial inclusion. Bangladesh offers the financial inclusion community an opportunity to assess the impact of large-scale financial inclusion over a long period of time, going beyond the brief time horizons that often characterize global...

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A Hitchhiker’s Guide to Empirical Macro Models

Fabio Canova  and Filippo Ferroni in this Chicago Fed paper (136 pages!): This paper describes a package which uses MATLAB functions and routines to estimate VARs, local projections and other models with classical or Bayesian methods. The toolbox allows a researcher to conduct inference under various prior assumptions on the parameters, to produce point and density forecasts, to measure spillovers and to trace out the causal effect of shocks using a number of identification...

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