Professor Stephen Blyth has been appointed, and Dr Randall Kroszner reappointed, as external members of the Financial Policy Committee by the Chancellor of the Exchequer, Rachel Reeves
The Bank of England has today published a Discussion Paper on potential measures to enhance the resilience of the UK government bond (‘gilt’) repo market
The latest meeting of the Standards Advisory Panel (SAP)
William West/AFP via Getty ImagesThe Australian sharemarket has had a remarkably strong run since December 2023, when the S&P/ASX 200 index was around 7,000. In recent weeks the index topped 9,000 for the first time, a rise of about 16% on an annualised basis over this 21-month period.
Many top-performing companies say they are committed to supporting women in the workplace, and there’s reason to believe most men want to be better allies to women as well. They just don’t know how.
Firms respond heterogeneously to aggregate fluctuations, yet standard linear models impose restrictive assumptions on firm sensitivities. Applying the Generalized Random Forest to U.S. firm-level data, we document strong nonlinearities in how firm characteristics shape responses to macroeconomic shocks. We show that nonlinearities significantly lower aggregate esponses, leading linear models to overestimate the economy’s sensitivity to shocks by up to 1.7 percentage points.
This paper investigates the relationship between public debt and the effectiveness of fiscal policy, presenting evidence of an inverse relationship between government debt and fiscal multipliers. To explain the results, I develop and calibrate a HANK model tailored to the U.S. economy. The model reveals that higher public debt diminishes fiscal multipliers by making households less constrained. Theoretically, I show intertemporal marginal propensities to consume (iMPCs) are sufficient statistics of public debt, influencing fiscal multipliers.
Contrary to what many economic models suggest, salaries aren’t constantly recalibrated based on skills or technology. They follow the economy and politics—and common sense: hire when needed, promote from within, and slow hiring when budgets tighten.
Hyung Joo Kim and Dong Hwan OhWe propose a novel estimation framework for option pricing models that incorporates local, state-dependent information to improve out-of-sample forecasting performance.
Marcos Mac Mullen and Soo Kyung WooThis paper studies the drivers of the US real exchange rate (RER), with a particular focus on its comovement with net trade (NT) flows. We consider the entire spectrum of frequencies, as the low-frequency variation accounts for 62 and 64 percent of the unconditional variance of the RER and NT, respectively.
