Articles tagged with Monetary Policy
A recent study by Bas Heerma van Voss found that governments are prone to cognitive biases when it comes to major risks like pandemics and climate change. Debiasing training for risk analysts can help recognize and avoid these biases, but such training is rarely implemented systematically.
Research suggests that cost of living and male job dissatisfaction played a major role in Europe's populist surge. Financial insecurity emerged as the strongest predictor of an anti-elite outlook, increasing the chances of voting populist by 17-20 percentage points.
A new study evaluates climate policies in 40 countries, finding that a comprehensive toolkit including carbon pricing, taxation, and renewable energy investments is most effective. Countries like Australia, Canada, and Japan have substantial potential to strengthen their climate performance by increasing fossil fuel excise taxes.
A new study by Davide Sandretto finds that greener cryptocurrencies, such as those using Proof-of-Stake protocols, respond more steadily to market movements. This reduces volatility and is a win-win for the environment and investors, who face fewer risks from energy price shocks.
A new study based on responses from 5,500 people in Germany and the UK found that European voters overwhelmingly reject imposing trade tariffs. Despite being asked to support green investments and respond to Donald Trump's new trade policies, participants preferred other economic solutions over tariffs.
A study by Bonnie Johnson at the University of Kansas found that group reflective practice among planning commissioners and staff improves services and reduces stress. The researchers explored the use of unconventional formats for staff reports to facilitate discussions about their work.
Advanced machine learning techniques reveal that China's collateral monetary policy stimulates shadow banking growth while increasing bank risks, particularly among non-primary banks. The 2018 New Asset Management Regulation effectively mitigated these effects, demonstrating the value of targeted regulatory interventions.
A new study from the University of Vaasa shows that traditional risk models often underestimate extreme events in financial markets. Power-law models offer a more accurate lens to understand financial markets' risk dynamics, revealing sharp rises and crashes are common across equities, commodities, FX markets, and cryptocurrencies.
Through the Archer Fellowship Program, UTA students spend time in Washington, D.C., completing internships and taking courses taught by UT System faculty and policy experts. The program offers unique opportunities for students to network with professionals, learn from peers, and gain insight into federal policy-making.
Researchers found that banks referred for violations are significantly more likely to engage in risk-heavy strategies and speculative lending. Stronger boards with larger and more independent membership can dampen the negative impact of misconduct.
A pooled cross-sectional study found a positive correlation between state minimum wage hikes and improved food security rates among at-risk households. Policymakers can use these findings to set wages that reduce food insecurity burden on U.S. children and families.
A study by the University of Exeter finds that Lebanon's dual education system exacerbates social inequalities, with parents favoring private schools over public ones. The economic crisis has led to reduced government funding, causing school days to be shortened and curricula to be rushed.
Olivier Blanchard, Jordi Galí and Michael Woodford received the BBVA Frontiers of Knowledge Award for establishing rigorous foundations for business cycle fluctuations analysis. Their New Keynesian paradigm integrates monopolistic competition and nominal rigidities into dynamic general equilibrium models with rational expectations.
A new study from the University of Vaasa identifies transparency, centralisation, territorial access, fee structures, and referral schemes as risk factors in cryptocurrency exchanges. Decentralised exchanges have a lower probability of failure compared to centralised platforms due to their distributed structure.
A study by University of Exeter researcher Dr Pedro Perfeito da Silva explores the impact of popular resistance and union support on economic policies in Ecuador and El Salvador. The findings suggest that administrations reliant on strong public backing implemented stricter capital controls, while those with less support adopted more n...
Research by economists at University of East Anglia and others found links between finance ministers and executives at biggest credit ratings agencies associated with higher ratings for countries without these connections, highlighting a conflict-of-interest problem in the credit ratings agency business model.
A recent study suggests that IMF lending policies, especially structural loans, lead to significant increases in greenhouse gas emissions in Global South countries. This effect is most pronounced with second or subsequent loans, which can result in immediate spikes in emissions.
The employment-to-population ratio for working-age people with disabilities increased from 35.6% to 36.9%, bringing them close to the previous high observed in December last year. The labor force participation rate also rebounded, with people with disabilities experiencing a 5% increase in May.
The April nTIDE report reveals a decline in employment-to-population ratio and labor force participation rate for people with disabilities. Despite this downturn, employment remains above pre-pandemic levels, with working-age individuals with disabilities making up 3.8% of the total workforce.
Central bank balance sheet policies are effective if investors behave according to a plausible alternative behavioral assumption to rational expectations. Professors Iovino and Sergeyev's new paper finds that level-k thinking breaks away with the demanding assumption of rational expectations, allowing agents to have varying degrees of ...
A recent study by University of Exeter researchers found that the Bank of England's media coverage plays a significant role in reinforcing accountability. The study analyzed 13,986 articles from major news outlets and discovered that media coverage levels are strongly linked to parliamentary hearings and speeches by central bankers. Th...
A new study by Florida Atlantic University suggests that monetary policy can impact pollution, with domestic effects being more significant than international spillovers. The research found that changes in the US Fed's interest rates can reduce CO2 emissions in the short run, but not necessarily in the long run.
A new study from Kyushu University examines the spillover effects of rising energy prices following the 2022 Russian invasion of Ukraine. The research finds that a 20% increase in energy prices has little impact on global prices and social surplus, with only a small effect on certain sectors.
The National Trends in Disability Employment (nTIDE) October 2022 COVID Update reports little change in unemployment rates for people with and without disabilities. The overall jobs picture remains steady, but slight increases in furloughs are seen, particularly in the tech sector.
The employment-to-population ratio for people with disabilities increased slightly to 34.6% in August, while the labor force participation rate rose by 0.8%. Historically, impacts on the labor market lag behind economic growth movements, suggesting anti-inflationary measures may be early impact.
New research from the University of Bath shows that aggressive interest rate hikes by global central banks may lead to a liquidity crisis, high market volatility, and decreased asset prices. The study highlights the importance of finding a balance between addressing inflation and triggering a liquidity crisis.
Researchers found that an appreciation of the US dollar leads to higher stock returns, while a decline in local currency stock returns accompanies a weaker dollar. Emerging market economy stocks with high dollar beta tend to have higher average returns.
A new study from Indiana University Kelley School of Business found that very low effective tax rates often do not reflect high levels of corporate tax avoidance. Instead, non-tax items such as valuation allowance releases and accounting for uncertain tax positions are the major drivers of these low ETRs.
A study by Youssef Benzarti and Jarkko Harju found that regional payroll tax cuts in Finland reduced negative effects of the Great Recession on employment, particularly among men and low-skilled employees. The cuts also relaxed liquidity constraints for firms, making them more resilient during downturns.
Researchers examine the impact of unconventional monetary policy on bank risk-taking in the syndicated loan market, finding no additional interest rate reduction for riskier firms. This suggests that loose lending is not a concern under unconventional monetary policy measures.
Lenient return policies, such as those with flexible deadlines and monetary refunds, can increase purchases and reduce returns. The study suggests that retailers should consider the specific goals of their business when designing their return policies.
A recent study examines the role of monetary aggregates in monetary policy and finds that they are not a compelling reason for assigning a prominent role. Monetary aggregates can provide information about unobserved variables, but their relevance is limited.
Research by Professor Christopher Martin and Dr George Bratsiotis finds that monetary policy significantly reduces unemployment rates. The studies suggest that wage rises have a greater detrimental impact on employment levels when monetary policies aim to stabilize inflation, contradicting union views.
Research finds that economic interdependence, including capital market and monetary policy ties, inhibits conflict behaviors more effectively than trade ties. Countries can exert non-violent pressure and test resolve of economic partners, reducing the risk of war.