Selected Reference and Reading Materials compiled by Dan Villanueva


Total records: 676 | Select no. of records per page: 10 | 20 | 30 | 50 | 100 | Show all | Search
Select a Page:   << Previous  1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 Next >>


Record ID

116     [ Page 57 of 68, No. 1 ]

Date

2011-01

Author

Bianchi, Javier and Mendoza, Enrique G.

Affiliation

Research Department, IMF

Title

Overborrowing, Financial Crises and ‘Macro-prudential’ Policy

Summary /
Abstract

This paper studies overborrowing, financial crises and macro-prudential policy in an equilibrium model of business cycles and asset prices with collateral constraints. Agents in a decentralized competitive equilibrium do not internalize the negative effects of asset fire-sales on the value of other agents' assets and hence they borrow too much" ex ante, compared with a constrained social planner who internalizes these effects. Average debt and leverage ratios are slightly larger in the competitive equilibrium, but the incidence and magnitude of financial crises are much larger. Excess asset returns, Sharpe ratios and the market price of risk are also much larger. State-contigent taxes on debt and dividends of about 1 and -0.5 percent on average respectively support the planner’s allocations as a competitive equilibrium and increase social welfare.

Keywords

Financial crises, amplification effects, business cycles, fire-sales

URL

http://www.imf.org/external/pubs/ft/wp/2011/wp1124.pdf



Record ID

115     [ Page 57 of 68, No. 2 ]

Date

2011-01

Author

Bhatia, Ashok Vir

Affiliation

MCM and SPR Departments, IMF

Title

Consolidated Regulation and Supervision in the United States

Summary /
Abstract

This paper builds on a Technical Note produced as part of the IMF’s 2010 Financial Sector Assessment Program (FSAP) review of the United States. It addresses enterprise-wide oversight of financial groups, a key tool to mitigate systemic risk. Focusing on legal arrangements, it recommends eliminating exceptions for holding companies owning certain limited-purpose banks, harmonizing arrangements for bank and thrift holding companies, and bringing into the net a few systemic nonbank financial groups, with the Federal Reserve as the sole consolidated regulator and supervisor.

Keywords

Bank holding company, consoldated regulation, consolidated supervision, investment banking group, savings and loan holding company

URL

http://www.imf.org/external/pubs/ft/wp/2011/wp1123.pdf



Record ID

114     [ Page 57 of 68, No. 3 ]

Date

2010-12

Author

Igor Vetlov, Ricardo Mourinho Felix, Laure Frey, Tibor Hledik, Zoltan Jakab, Niki Papadopoulou, Lukas Reiss Martin Schneider

Affiliation

Bank of Lithuania, Banco de Portugal, Banque de France, Czech National Bank, Office of the Fiscal Council Republic of Hungary, Central Bank of Cyprus, Oesterreichische Nationalbank and Oesterreichische

Title

The Implementation of Scenarios using DSGE Models

Summary /
Abstract

The new generation of dynamic stochastic general equilibrium (DSGE) models seems particularly suited for conducting scenario analysis. These models formalise the behaviour of economic agents on the basis of explicit micro-foundations. As a result, they appear less prone to the Lucas critique than traditional macroeconometric models. DSGE models provide researchers with powerful tools, which allow for the design of a broad range of scenarios and can tackle a large range of issues, while at the same time offering an appealing structural interpretation of the scenario specification and simulation results. This paper provides illustrations of some of the modelling issues that often arise when implementing scenarios using DSGE models in the context of projection exercises or policy analysis. These issues reflect the sensitivity of DSGE model-based analysis to scenario assumptions, which in more traditional models are apparently less critical, such as, for example, scenario event anticipation and duration, as well as treatment of monetary and fiscal policy rules.

Keywords

Business fluctuations, monetary policy, fiscal policy, forecasting and simulation

URL

http://www.centralbank.gov.cy/media/pdf/NPWPE_No10_102010.pdf



Record ID

113     [ Page 57 of 68, No. 4 ]

Date

2011-01

Author

Dabán Sánchez, Teresa

Affiliation

International Monetary Fund

Title

Strengthening Chile's Rule-Based Fiscal Framework

Summary /
Abstract

The cornerstone of Chile’s impressive fiscal performance has been its structural balance rule. By insulating public spending from short-term copper price fluctuations and the business cycle, the rule has helped preserve fiscal discipline. However, the implementation of the rule in recent years has revealed certain challenges, and in May 2010, the government established a high-level commission to recommend reforms that could make the rule even more effective. This paper assesses the scope for improving the design and implementation of the structural balance rule in light of best practices and OECD country experience with fiscal rules. This assessment suggests several options to strengthen Chile’s fiscal rule, including by simplifying the calculation of the structural balance; enhancing the rule’s flexibility, transparency and accountability; and complementing it with a medium-term fiscal framework.

Keywords

Fiscal rules, structural balance, resource revenue management, resource curse, public financial management, transparency, accountability, resource-producing countries.

URL

http://www.imf.org/external/pubs/ft/wp/2011/wp1117.pdf

Remarks

The Philippine fiscal performance over the long haul can be vastly improved by implementing Chile's structural balance rule, tailored to Philippine circumstances. The attached paper explains this fiscal framework and discusses recent policy proposals to make it even more effective.



Record ID

112     [ Page 57 of 68, No. 5 ]

Date

2005-08

Author

Scott Roger and Mark Stone

Affiliation

International Monetary Fund

Title

On Target? The International Experience with Achieving Inflation Targets

Summary /
Abstract

This paper examines the international experience with full-fledged inflation targeting monetary regimes. Stylized facts are brought together from a review of the institutional elements of inflation targeting frameworks, a comparison of actual and targeted inflation outcomes, and case studies of large inflation target misses. Inflation targets are missed about 40 percent of the time and often by substantial amounts and for prolonged periods, yet no country has dropped inflation targeting. The resilience of the inflation targeting regime is attributable to the flexibility of the framework, its high standards of transparency and accountability, and the lack of realistic alternatives.

Keywords

Inflation targeting, monetary policy

URL

http://www.imf.org/external/pubs/ft/wp/2005/wp05163.pdf

Remarks

The only paper quoted by RBNZ Gov Bollard in a speech (30 July 2008) on the flexibility and limits to inflation targeting. See http://dv.data.ph/articles/display.php?id=111.



Record ID

111     [ Page 57 of 68, No. 6 ]

Date

2008-09

Author

Alan Bollard and Tim Ng

Affiliation

Reserve Bank of New Zealand

Title

Flexibility and the limits to inflation targeting

Summary /
Abstract

This article reproduces the paper for a speech given by Governor Alan Bollard on 30 July 2008. We argue that New Zealand’s flexible inflation-targeting framework serves the economy well, but one should not to ask too much of it. Inflation targeting is the best approach New Zealand and many other similar countries have yet found for monetary policy, among a limited number of viable alternatives. The fact remains that the New Zealand economy is subject to powerful forces, and monetary policy can only do so much to buffer the shocks. When shocks are persistent, as with oil and food prices currently, it is difficult to judge the appropriate response. Monetary policy needs to allow the initial price changes to occur, but be firm enough to ensure that generalised second-round inflation effects do not take hold. The clear medium-term objective of 1-3 percent inflation helps to anchor inflation expectations, and gives us more scope to accommodate short-term inflation shocks while ensuring that the price stability objective is not undermined in the process.

URL

http://www.rbnz.govt.nz/research/bulletin/2007_2011/2008sep71_3bollardng.pdf



Record ID

110     [ Page 57 of 68, No. 7 ]

Date

2010-03

Author

Jaromir Beneš, Kevin Clinton, Marianne, Johnson, Douglas Laxton, and Troy Matheson

Affiliation

IMF

Title

Structural Models in Real Time

Summary /
Abstract

This paper outlines a simple approach for incorporating extraneous predictions into structural models. The method allows the forecaster to combine predictions derived from any source in a way that is consistent with the underlying structure of the model. The method is flexible enough that predictions can be up-weighted or down-weighted on a case-by-case basis. We illustrate the approach using a small quarterly structural and real-time data for the United States.

Keywords

High frequency indicators, Monetary Policy, Forecasting

URL

http://www.imf.org/external/pubs/ft/wp/2010/wp1056.pdf



Record ID

109     [ Page 57 of 68, No. 8 ]

Date

2010-07

Author

Takatoshi Ito

Affiliation

University of Tokyo

Title

Monetary Policy and Financial Stability: Is Inflation Targeting Passé?

Summary /
Abstract

It would be easy to say that central banks should consider asset prices as one of the objectives to avoid boom and bust cycles, as happened in the 2007–2009 crisis; the dotcom bubble of 2001; and the Japanese boom and bust of the 1980s and 1990s. However, its implementation would be theoretically and empirically difficult since the monetary policy instrument, narrowly defined, is just the interest rate. Flexible inflation targeting (FIT) is basically a sound monetary policy framework even after experiencing a severe financial crisis, as what originated in the United States. Assigning too much weight to asset prices as a monetary policy objective would cause a serious tradeoff problem. Consumer price index deflation may have to be tolerated to avoid an asset bubble, which would be a serious problem, since once a bubble is formed, a slight increase in the interest rate would not stop it. The first-best policy is to enhance supervision and regulation of financial institutions to avoid moral hazard and concentration of risk.

Keywords

Inflation targeting, financial stability, asset price bubble, supervision and regulation

URL

http://www.adb.org/Documents/Working-Papers/2010/Economics-WP206.pdf

Remarks

This is a very good paper by Prof Ito. Its emphasis on flexible inflation targeting is reminiscent of the position taken by Ben Bernanke and Rick Mishkin, and its first-best policy of enhanced financial oversight is well placed.



Record ID

108     [ Page 57 of 68, No. 9 ]

Date

2009-09

Author

Philipp Maier

Affiliation

Bank of Canada

Title

Conference Summary: International Experience with the Conduct of Monetary Policy under Inflation Targeting

Summary /
Abstract

Central bankers from inflation-targeting and non-inflation-targeting countries around the world and several distinguished scholars assembled at the Bank of Canada in July 2008 to review the international experience in some detail. This article highlights topics covered in the special lectures and sessions, including how inflation targeting can manage external shocks, various ways in which monetary policy decisions are taken, and the issues of transparency and communications. It also reports on the discussion in the closing panel, which considered options for the future of inflation targeting.

Keywords

Monetary policy, inflation targeting

URL

http://www.bankofcanada.ca/en/review/winter08-09/maier.pdf

Remarks

The Bank of Canada's annual research conference, held in July 2008, examined central banks’ experiences with the conduct of monetary policy under inflation targeting. Since the introduction of inflation targeting by New Zealand in 1990, and the formal adoption of inflation targets by the Bank of Canada in 1991, inflation targeting has become a popular monetary policy framework. For Canada, inflation targeting has contributed to keeping total CPI inflation very close to 2 per cent, on average, since 1991. The reduction in inflation, coupled with an explicit commitment to keep inflation low, stable, and predictable, has helped to anchor inflation expectations close to the 2 per cent inflation target as well. Since other countries that have introduced inflation targeting have had similar experiences, inflation targeting is often credited as a monetary policy framework that can keep inflation low and stable, and thus contribute to sound and stable macroeconomic performance.



Record ID

107     [ Page 57 of 68, No. 10 ]

Date

2010-03

Author

Hyun Song Shin

Affiliation

Princeton University

Title

Financial intermediation and the post-crisis financial system

Summary /
Abstract

Securitization was meant to disperse credit risk to those who were better able to bear it. In practice, securitization appears to have concentrated the risks in the financial intermediary sector itself. This paper outlines an accounting framework for the financial system for assessing the impact of securitization on financial stability. If securitization leads to the lengthening of intermediation chains, then risks becomes concentrated in the intermediary sector with damaging consequences for financial stability. Covered bonds are one form of securitization that do not fall foul of this principle. I discuss the role of countercyclial capital requirements and the Spanish-style statistical provisioning in mitigating the harmful effects of lengthening intermediation chains.

Keywords

Leverage; financial intermediation chains, financial stability

URL

http://www.bis.org/publ/work304.pdf

Remarks

This is a nice analytical framework using flow-of-funds and balance sheet identities, complemented by excellent commentaries by Donald Kohn of the Fed Res Board and Jose Vinals of the IMF.



Total records: 676 | Select no. of records per page: 10 | 20 | 30 | 50 | 100 | Show all | Search
Select a Page:   << Previous  1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 Next >>



Copyright ©2010-2013 Web development and maintenance by Ferdinand S. Co | Updated by: Dan Villanueva