We explore the economics and optimal design of "permissioned" distributed ledger technology (DLT) in a credit economy. Designated validators verify transactions and update the ledger at a cost that is derived from a supermajority voting rule, thus giving rise to a public good provision game.
Most central banks are exploring central bank digital currencies (CBDCs), and their work continues apace amid the Covid-19 pandemic. This BIS paper updates earlier surveys that asked central banks how their plans in this area are developing.
The Basel Committee is publishing the consultative document "Minimum haircut floors for securities financing transactions", January 2021.
We study optimal bank leverage and recapitalization in general equilibrium when the supply of specialized investment capital is imperfectly elastic.
This blog is written by NIESR Fellow Huw Dixon. Any opinions expressed in the paper are those of the author, and do not necessarily reflect the views of the Institute
Summary
The CPILW rose slightly from 0.7% in November to 0.8% in December. The CPIH measure of inflation also increased from 0.6% in November 2020 to 0.8% in December. Both measures indicate an increase in inflation in December.
Regulatory reforms following the financial crisis of 2007–08 created incentives for large global banks to lower their systemic importance. We establish that differences in profitability shape banks' response to these reforms.
We propose a method to extract the risk-neutral distribution of fi rm-specifi c stock returns using both options and credit default swaps (CDS).
This paper examines how China's local governments make investment via financing vehicles (LGFVs) and provides new insights on often-criticised LGFVs from a different perspective.
The financial sector has been hit by hackers relatively more often than other sectors during the Covid-19 pandemic. While this has not yet led to significant disruptions or a systemic impact, there are substantial risks from cyber attacks for financial institutions, their staff and their customers going forward. Financial authorities are working to mitigate cyber risks, including through international cooperation.
We explore the structural drivers of bank and nonbank credit cycles using a medium-scale DSGE model with two types of financial intermediation. We posit economy-wide and sectoral disturbances in both macro and financial sectors.
