Ricardo's threads | Nothing contributes so much to the prosperity and happiness of a country as high profits

FEDS Paper: A Market Interpretation of Treatment Effects

12/20/2024 Federal Reserve Central banks

Robert Minton and Casey B. MulliganMarkets, likened to an invisible hand, often appear to contradict econometric assumptions that rule out spillovers of one person’s treatment on another’s outcomes. This paper provides a simple statistical framework highlighting that controls are indirectly affected by the treatment through the market. Further, the effect of the treatment on the treated reveals only part of the consequence for the treated of treating the entire market.

FEDS Paper: Measured Inflation and the New-Keynesian Model

12/20/2024 Federal Reserve Central banks

Lawrence J. Christiano, Martin Eichenbaum, and Benjamin K. JohannsenResearchers typically compare inflation in the new Keynesian (NK) model to published inflation measures constructed from indices like the CPI. Inflation in the standard NK model without price indexation is bounded above. The model analogue of fixed-weight inflation measures, like the CPI, is not.

Minutes of the UK Money Markets Code Sub-Committee – November 2024

12/20/2024 Bank of England Central banks

The Money Markets Committee is a forum for market participants and authorities to discuss the UK unsecured deposits and funding market and securities lending and repo markets.

FEDS Paper: The Fed's Discount Window in "Normal" Times (Revised)

12/20/2024 Federal Reserve Central banks

Huberto M. Ennis and Elizabeth KleeWe study transaction-level data of bank borrowings at the Federal Reserve’s discount window from 2010 to 2019. We merge these data with quarterly information on bank balance sheets and income statements. To aid in the interpretation of our empirical analysis, we also develop a detailed model of the decision of banks to borrow from various sources, including the discount window.

Payment systems Memorandum of Understanding

12/20/2024 Bank of England Central banks

Bank of England, FCA, PRA and PSR conduct 2024 review of Memorandum of Understanding for payment systems in the UK

The Bank of England welcomes API Panel of Expert recommendations to enhance cross-border payments

12/19/2024 Bank of England Central banks

The Bank of England welcomes the October 2024 publication of Promoting the harmonisation of application programming interfaces to enhance cross-border payments: recommendations and toolkit.

Bank Rate maintained at 4.75% - December 2024

12/19/2024 Bank of England Central banks

The Bank of England’s Monetary Policy Committee is responsible for making decisions about Bank Rate.

Monetary Policy Committee dates for 2026

12/19/2024 Bank of England Central banks

Provisional dates for Monetary Policy Committee (MPC) announcements on Bank Rate and publication of MPC meeting minutes and the quarterly Monetary Policy Report.

Rules against insider trading also boost innovation, research finds

12/18/2024 The Conversation News & Comments

Strong enforcement of insider trading laws doesn’t just protect investors – it encourages businesses to be more innovative, according to our new peer-reviewed research.

The geography of capital allocation in the euro area

12/18/2024 European Central Bank Central banks

We assess Euro Area financial integration correcting for the role of “onshore offshore financial centers” (OOFCs) within the Euro Area. The OOFCs of Luxembourg, Ireland, and the Netherlands serve dual roles as both hubs of investment fund intermediation and centers of securities issuance by foreign firms. We provide new estimates of Euro Area countries’ bilateral portfolio investments which look through both roles, attributing the wealth held via investment funds to the underlying holders and linking securities issuance to the ultimate parent firms.

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