September 2020: New journal welcomes submissions

The Latin American Journal of Central Banking (LAJCB) publishes high-quality research on topics that are of keen interest to central banks and associated financial regulatory and supervisory agencies. The LAJCB covers traditional topics such as monetary theory and policy, exchange rates, and international finance. It also includes topics that have gained prominence more recently, such[…]

August 2020: New VoxEU Column – Managing volatile capital flows in emerging and frontier markets

by Reinout De Bock, Dimitris Drakopoulos, Rohit Goel, Lucyna Gornicka, Evan Papageorgiou, Patrick Schneider and Can Sever The COVID-19 pandemic caused an unprecedented sharp reversal of portfolio flows in emerging and frontier markets, triggering concerns about financial stability and consequently, strong policy responses. This column uses a novel analytical framework, the capital-flows-at-risk methodology, to show[…]

August 2020: New VoxEU Column – Managing capital flows to emerging markets

by Bilge Erten, Anton Korinek and José and Antonio Ocampo Recent market volatility has underlined how fickle international capital flows can be, and how important it is for emerging economies to have an adequate system of macroprudential policies in place. Capital controls that protect recipient countries from excessively risky types of flows are a crucial[…]

July 2020: New VoxEU Column – The COVID-19 threat to financial stability in Europe

By Henk Jan Reinders, Dirk Schoenmaker, and Mathijs van Dijk The severe economic impact of the COVID-19 pandemic could threaten financial stability. Since accounting-based methods report loan losses with a delay, this column adopts a real-time, market-based assessment of the impact on corporate loan portfolios. Using European stock market data, it estimates that the market-implied[…]

June 2020: EBA launches discussion on further enhancing supervisory powers of competent authorities

The European Banking Authority (EBA) published today a discussion paper exploring ways on how to enhance the Bank Recovery and Resolution Directive (BRRD) framework on early intervention measures. The objective is to further enhance crisis management tools available for competent authorities in addition to well-established and widely used supervisory powers laid down in the Capital[…]

June 2020: BIS Annual Economic Report 2020

This year’s BIS Annual Economic Report is (naturally) centered around the topic of Covid-19 and its impact on the economy, including the chapters “A global sudden stop”, “A monetary lifeline: central banks” crisis response, and “Central Banks and Payments in the Digital Era”. Link: BIS 2020 Annual Economic Report

June 2020: New VoxEU Column – Preserving capital in the financial sector to weather the storm

By Thorsten Beck, Francesco Mazzaferro, Richard Portes, Jean Quin, and Christian Schett On 27 May, the ESRB General Board adopted a wide-ranging recommendation to suspend pay-outs across different segments of the European financial system until the end of 2020. This column discusses why arguments for such restrictions weigh stronger than ownership and management rights during[…]

Exchange Rates and Asset Prices in a Global Demand System

Author(s): Ralph S. J. Koijen and Motohiro Yogo Date: June 2020 Abstract: Using international holdings data, we estimate a demand system for financial assets across 36 countries. The demand system provides a unified framework for decomposing variation in exchange rates, long-term yields, and stock prices; interpreting major economic events such as the European sovereign debt[…]