Finance and Economics Discussion Series (FEDS)by Lucia Gurrieri, Chase Ross, Ben Schmiedt, Alexandros P. Vardoulakis, and Vladimir Yankov We examine whether access to the Federal Reserve’s Overnight Reverse Repo Facility (ON RRP) affects money market fund flows during flight-to-safety episodes. We find that funds with ON RRP access serving sophisticated investors experience about a 1[…]
SUERF Policy Briefby Christoph Basten & Ragnar Juelsrud Changes in monetary policy rates are passed through to deposit rates incompletely, reducing the attractiveness to bank clients of deposits relative to assets with higher pass-through after policy rate hikes. This reduces deposit growth and, with deposits as primary refinancing, loan growth following monetary tightening, which supports[…]
SUERF Policy Briefby Federica Ciocchetta, Raffaele Gallo, Silvia Magri & Massimo Molinari This policy brief analyzes whether the deposits of “high digital” banks, i.e. those whose customers mainly use online money transfers, are more sensitive to changes in interest rates following the monetary tightening in 2022. We show that there are no significant differences between[…]
CEPR Press Book edited by Dirk Niepelt Digital innovation is transforming money and redrawing the global financial landscape. From instant payments to stablecoins, CBDC, and tokenised assets, new technologies are redefining how value is created, stored, and exchanged – reshaping the roles of banks, central banks, and markets. Yet this transformation is far from uniform:[…]
VoxEU Column by Fernando Cirelli, Arna Olafsson The sharp rise in interest rates since 2021 has not been matched by equal increases in household savings rates in advanced economies. This column uses transaction-level data from Iceland to study how changes in interest rates affect household deposit holdings. It shows that for the average household, low-yield[…]
European Systemic Risk Board Press Release The European Systemic Risk Board (ESRB) has published a report on three issues central to the crypto-asset ecosystem: stablecoins, crypto-asset investment products and multi-function groups. In particular, the report emphasises the risks stemming from stablecoins issued jointly by EU and non-EU entities. Link: ESRB Press Release
IMF Working Paperby Emine Boz, Anja Brüggen, Camila Casas, Georgios Georgiadis, Gita Gopinath, Arnaud Mehl “This paper presents the most comprehensive and up-to-date panel dataset on global trade invoicing currency and examines recent pattern shifts with a focus on geopolitical alignment. Using data for 132 countries from 1990 to 2023—including new coverage of the Chinese[…]
New York FED Liberty Street Economics – Blog Entryby Linda S. Goldberg and Samantha Hirschhorn “Global factors, like monetary policy rates from advanced economies and risk conditions, drive fluctuations in volumes of international capital flows and put pressure on exchange rates. The components of international capital flows that are described as global liquidity—consisting of cross-border[…]
BIS Quarterly Review by Tracy Chan, Goetz von Peter and Philip Wooldridge The period since the Great Financial Crisis has seen a shift in debt financing from loans to bonds. This article provides an overview of how the BIS debt securities statistics can be used to examine the size and structure of bond financing, including its sectoral and[…]
Keynote speech by Claudia Buch, Chair of the Supervisory Board of the ECB, BIS Innovation Summit: “Financial stability, supervision and regulation: building a 21st century infrastructure for better, evidence-based policymaking” Link: Keynote Speech: Financial stability, supervision and regulation: building a 21st century infrastructure for better, evidence-based policymaking