Financial institutions

The impact of regional institutional quality on economic growth and resilience in the EU

03/31/2025 European Central Bank Central banks

This paper investigates the impact of regional institutional quality on economic growth and economic resilience. Using data collected by the Quality of Government Institute, we conduct a two-way fixed effect panel regression model for around 200 European regions during the period 2010 to 2021. Our findings establish a positive relationship between institutional quality and medium-term GDP growth. This effect is more pronounced in regions with low-income per capita, highlighting the importance of asymmetries across European regions.

Statistical Notice 2025/02 - Updated taxonomy and data point model Version 1.3.1

03/31/2025 Bank of England Central banks

Statistical Notices update the definitions and guidance contained in the Banking Statistics Yellow Folder

FEDS Paper: Post-Pandemic Price Flexibility in the U.S.: Evidence and Implications for Price Setting Models

03/28/2025 Federal Reserve Central banks

Hugh Montag and Daniel Villar

FEDS Paper: From Friedman to Taylor: The Revival of Monetary Policy Rules in the 1990s

03/28/2025 Federal Reserve Central banks

Edward NelsonThis paper examines the revival in the analysis of monetary policy rules that took place during the 1990s. The focus is on the role that John Taylor played in this revival. It is argued that Taylor’s role—most notably through his advancing the Taylor rule, developed in 1992−1993 and increasingly permeating discussions in research and policy circles over the subsequent several years—is usefully viewed as one of building bridges.

FEDS Paper: How Markets Process Macro News: The Importance of Investor Attention

03/26/2025 Federal Reserve Central banks

T. Niklas KronerI provide evidence that investors' attention allocation plays a critical role in how financial markets incorporate macroeconomic news. Using intraday data, I document a sharp increase in the market reaction to Consumer Price Index (CPI) releases during the 2021-2023 inflation surge. Bond yields, market-implied inflation expectations, and other asset prices exhibit significantly stronger responses to CPI surprises, while reactions to other macroeconomic announcements remain largely unchanged.