Central banks

The Survey on the Access to Finance of Enterprises: monetary policy, economic and financing conditions and inflation expectations

10/29/2024 European Central Bank Central banks

The Survey on the Access to Finance of Enterprises (SAFE) provides information on the financing needs of euro area firms, their economic performance, and the availability of external funding. The article illustrates the role that the SAFE has played over the past 15 years. First, it discusses the contribution of the survey to assessing the transmission of monetary policy decisions to firms’ access to finance and their financing conditions. Second, the article shows how SAFE-based data provide timely evidence of the impact of economic crises on firms’ performance.

Asymmetric monetary policy spillovers: the role of supply chains, credit networks and fear of floating

10/29/2024 European Central Bank Central banks

This paper examines the asymmetry in global spillovers from Fed policy across tightening versus easing episodes several examples of which have been on display since the global financial crisis (GFC). We build a dynamic general equilibrium model featuring: (i) occasionally binding collateral constraints in the financial sector with significant cross-border exposure; and (ii) global supply chains, allowing us to match the asymmetry of spillovers across contractionary versus expansionary monetary policy shocks.

Asymmetric monetary policy spillovers: the role of supply chains, credit networks and fear of floating

10/29/2024 European Central Bank Central banks

The ECB’s accountability to the European Parliament 2019-2024: commitment in times of change

10/28/2024 European Central Bank Central banks

The article examines how the ECB’s accountability practices have evolved during the ninth term of the European Parliament (2019-2024) and how these compare to previous parliamentary terms. It highlights innovations in the ECB’s accountability practices, including enhanced communication efforts and coverage of new initiatives, such as the digital euro project, which motivated extensive dialogue with the European Parliament. While focusing on central banking accountability in relation to monetary policy, it also outlines the accountability channels for ECB Banking Supervision.

Geopolitics and trade in the euro area and the United States: de-risking of import supplies?

10/27/2024 European Central Bank Central banks

Based on granular data at the product level, this paper looks at whether and how the euro area and the United States have modified their import sourcing strategies since 2016, the role played by geopolitical tensions and the potential impact on import prices. It considers two different, but not mutually exclusive, changes to sourcing strategies for a given product: (i) increasing the number of sourcing countries and (ii) reducing the import market share of the main supplier country.

IFDP Paper: U.S. Monetary Policy Spillovers to Emerging Markets: Both Shocks and Vulnerabilities Matter(Revised)

10/25/2024 Federal Reserve Central banks

Shaghil Ahmed, Ozge Akinci, Albert QueraltoWe use a macroeconomic model to explore how policy drivers and country vulnerabilities matter for the transmission of U.S. monetary policy shifts to emerging markets. Our model features imperfections in domestic and international financial markets and imperfectly anchored inflation expectations. We show that higher U.S. interest rates arising from stronger U.S.

Minutes of the SONIA Stakeholder Advisory Group - 26 September 2024

10/25/2024 Bank of England Central banks

The SONIA Stakeholder Advisory Group supports the Bank’s administration of SONIA by providing advice and technical input to the Bank and the SONIA Oversight Committee

FEDS Paper: Quasi Maximum Likelihood Estimation and Inference of Large Approximate Dynamic Factor Models via the EM algorithm

10/24/2024 Federal Reserve Central banks

Matteo Barigozzi and Matteo LucianiWe study estimation of large Dynamic Factor models implemented through the Expectation Maximization (EM) algorithm, jointly with the Kalman smoother.

Implications of higher inflation and interest rates for macroprudential policy stance

10/23/2024 European Central Bank Central banks

In recent years, monetary policy and inflation considerations have been playing an increasingly important role for macroprudential authorities in their policy setting. This paper aims to assess the implications of high inflation and rising interest rates for macroprudential policy stance. The conceptual discussions and model-based analyses included in this paper reflect on the appropriate direction and impact of macroprudential policies at the different stages of financial and business cycles, given cross-country and banking system heterogeneities.

A statistical approach to identifying ECB monetary policy

10/23/2024 European Central Bank Central banks

We construct monetary policy indicators from high-frequency asset price changes following policy announcements, emphasising the concentration of asset price responses along specific dimensions and their leptokurtic distribution. Traditionally, these dimensions are identified by rotating principal components based on economic assumptions that overlook information in excess kurtosis. We employ Varimax rotation, leveraging excess kurtosis without using economic restrictions.

Central banks

Pages