Author(s):Roland Beck, Antonio Coppola, Angus Lewis, Matteo Maggiori, Martin Schmitz, Jesse Schregger Date:March 2023 Abstract: We reassess the pattern of Euro Area financial integration adjusting for the role of “onshore offshore financial centers” (OOFCs) within the Euro Area. While the Euro Area records large levels of international investment both within and outside of the currency[…]
Author(s):Andrew Metrick, Paul Schmelzing Date:March 2023 Abstract: U.S. and European banking institutions were hit by a wave of distress in March 2023. Policymakers on both sides of the Atlantic reacted with an array of interventions, some targeting individual institutions, others designed to shore up the banking sector as a whole. This paper contextualizes events using[…]
Author(s):Michael Kumhof, Marco Pinchetti, Phurichai Rungcharoenkitkul, Andrej Sokol Date:March 2023 Abstract: We study the consequences for business cycles and welfare of introducing an interest-bearing retail CBDC, competing with bank deposits as medium of exchange, into an estimated 2-country DSGE environment. CBDC issuance of 30% of GDP increases output and welfare by around 6% and 2%,[…]
Author(s):Daniel Dimitrov, Sweder van Wijnbergen Date:March 2023 Abstract: We propose a credit portfolio approach for evaluating systemic risk and attributing it across institutions. We construct a model that can be estimated from high-frequency CDS data. This captures risks from publicly traded banks, privately held institutions, and cooperative banks, extending approaches that rely on information from[…]
Author(s):Javier Bianchi and César Sosa-Padilla Date:March 2023 Abstract: This paper surveys the recent empirical literature on historical banking crises, defined as events taking place before 1980. Advances in data collection and identification have provided new insights into the causes and consequences of crises both immediately and over the long run. We highlight three overarching threads[…]
By Pilar Castrillo, Martin Iseringhausen, Rolf Strauch Over the coming years, the current tightening of financial conditions could diminish the financial vulnerabilities coming from high asset prices that built up during the period of low interest rates. But there are short-term risks, as recently seen when some banks outside the euro area fell upon troubled[…]
By Jon Danielsson, Charles Goodhart The downfall of Silicon Valley Bank and Credit Suisse has exposed failures in how we regulate the financial system. This column argues that the problems we now see in the system have arisen because the financial authorities have been trying to do the impossible: maintain growth while keeping inflation under[…]
By Viral Acharya, Rahul Chauhan, Raghuram Rajan, Sascha Steffen The last round of quantitative tightening caused two episodes of significant liquidity stress in US financial markets. This column asks whether the prior expansion and then shrinkage of the Fed’s balance sheet had left the private financial sector more vulnerable to such disruptions. The authors find[…]
The Bank of Canada, the Bank of England, the Bank of Japan, the European Central Bank, the Federal Reserve and the Swiss National Bank are today announcing a coordinated action to enhance the provision of liquidity via the standing US dollar liquidity swap line arrangements. To improve the swap lines’ effectiveness in providing US dollar[…]
CfP Deadline Date:April 30, 2023 Conference Event:June 26, 2023 Event Location:Turin, Italy Organizer(s):Long-Term Investors@UniTo Initiative Directorate General for Economics, Statistics and Research of the Bank of Italy Keynote speaker(s): Andrea Vedolin (Boston University, NBER & CEPR) Description: Submission & Selection: Both theoretical and applied papers will be considered. Only papers not yet accepted for publication[…]