Author(s): Jean-Edouard Colliard and Co-Pierre Georg Date: February 2020 Abstract: Despite a heated debate on the perceived increasing complexity of financial regulation, there is no available measure of regulatory complexity other than the mere length of regulatory documents. To fill this gap, we propose to apply simple measures from the computer science literature by treating regulation[…]
Capital flows to emerging markets have continued to be highly volatile since the Global Crisis. This column uses a new framework to show that country characteristics and policy responses matter for risks to future capital flows. It finds that good institutions support stable capital flows over the medium horizon, and while foreign exchange interventions seem[…]
Author(s): Linda Marlene Schilling Date: December 2019 Abstract: The paper provides a novel theory of how banks not only exploit but also cause being perceived as ‘too big to fail’. Bank creditors are also voters. Economic voting prompts politicians to grant bailouts given a bank failure. The bank’s capital structure acts as a tool to[…]
Author(s): Ethan Ilzetzki, Kenneth Rogoff and Carmen M. Reinhart Date: January 2020 Abstract: On the twentieth anniversary of its inception, the euro has yet to expand its role as an international currency. We document this fact with a wide range of indicators including its role as an anchor or reference in exchange rate arrangements-which we argue[…]
Author(s): Itamar Drechsler, Alexi Savov, Philipp Schnabl Date: December 2019 Abstract: Between 2003 and 2006, the Federal Reserve raised rates by 4.25%. Yet it was precisely during this period that the housing boom accelerated, fueled by rapid growth in mortgage lending. There is deep disagreement about how, or even if, monetary policy impacted the boom.[…]
Author(s): Christoffer Koch, Gary Richardson, Patrick Van Horn Date: January 2020 Abstract: Countercyclical capital buffers (CCyBs) are an old idea recently resurrected. CCyBs compel banks at the core of financial systems to accumulate capital during expansions so that they are better able to sustain operations during downturns. To gauge the potential impact of modern CCyBs,[…]
After the Global Crisis, accommodative monetary policy also eased financial conditions in emerging market economies. This column shows that US banks contributed to the transmission of US monetary policy and that regulation and supervision attenuated it. Only US banks that performed well in the Fed’s annual stress tests expanded their lending to emerging markets in[…]
Since the G20 declared in 2009 that “the era of bank secrecy is over”, jurisdictions have implemented an unprecedented range of measures designed to increase tax transparency by ensuring that information on foreign financial assets would be disclosed to tax authorities. This column presents the main results from a recent study on the impact of[…]
CfP Deadline Date: May 1st, 2020 Conference Event: September 24th-25th, 2020 Event Location: Vilnius, Lithuania Organizer(s): Bank of Lithuania, the National Bank of Poland, CEPR, and CEBRA’s International Trade and Macroeconomics Program This conference will focus on recent transformations of international trade and macroeconomic interdependence induced by the growth of global value chains (GVCs). We[…]