Central Bank of Hungary : Válogatás a nemzetközi intézmények és külföldi jegybankok publikációiból (2021.02.11-02.17.) (2024)

Challenges of balancing monetary policy with fiscal policyhttps://www.bis.org/review/r210216e.htm

Opening statement by DrRobert Holzmann, Governor of the Central Bank of the Republic of Austria, at the Warwick Economics Summit 2021, 5 February 2021

BIS

Central Bankers'

Speech

Consolidated financial statement of the Eurosystem as at 12 February 2021, 16/02/2021https://www.ecb.europa.eu/press/pr/wfs/2021/html/ecb.fst210216.en.html

Commentaryhttps://www.ecb.europa.eu/press/pr/wfs/2021/html/ecb.fs210216.en.html

ECB Press Release

Can we measure inflation expectations using Twitter?, 15/02/2021https://www.bancaditalia.it/pubblicazioni/temi-discussione/2021/2021-1318/en_tema_1318.pdf

Drawing on Italian tweets, we employ textual data and machine learning techniques to build new real-time measures of consumers' inflation expectations. First, the authors select some keywords to identify tweets related to prices and expectations thereof. Second, they build a set of daily measures of inflation expectations on the selected tweets, combining the Latent Dirichlet Allocation (LDA) with a dictionary-based approach, using manually labelled bi-grams and tri-grams. Finally, they show that Twitter-based indicators are highly correlated with both monthly survey-based and daily market-based inflation expectations. The new indicators provide additional information beyond market-based expectations, professional forecasts, and realized inflation.

Keywords: inflation expectations, Twitter data, text mining, big, data, survey-based measures, market-based measures, forecasting

BIS Research Hub Working Paper

Is inflation targeting a strategy past its sell-by date?, 12/02/2021https://www.bancaditalia.it/pubblicazioni/temi-discussione/2021/2021-1316/en_tema_1316.pdf

In this paper the authors compare alternative monetary policy strategies to assess which one is best suited (1) to reduce output and inflation volatility and at the same time (2) minimise the frequency and costs of ZLB episodes. They consider only targeting rules, i.e. rules that minimise the loss function assigned by the Government to the monetary policymaker, who is assumed to set the policy rate under discretion. They run a horse race among eight different strategies. Our analysis confirms the theoretical findings by Svensson (1999) and Vestin (2006) that price-level targeting can guarantee a better performance than inflation targeting in terms of both of the criteria described above. These findings are valid regardless of whether interest-rate variability is included in the loss function or not and are robust to changes in model parameters.

Keywords: effective lower bound, inflation targeting, price-level targeting

BIS Research Hub Working Paper

Powell keeps eye on employment, 12/02/2021https://www.omfif.org/2021/02/powell-keeps-eye-on-maximum-employment/?utm_source=omfifupdate

Academic circles and social media are raging with debates about President Joe Biden's fiscal proposals. Some commentators argue they are too large and will generate inflation, with 10-year break-even inflation rates shooting up to 2.25%. Jay Powell, chairman of the Fed, entered this arena with a speech in New York, focusing on the Fed's maximum employment objective and the labour market situation, defending its highly accommodative stance.

OMFIF Commentary

Introductory Remarks at the "Corporate Liquidity and Solvency in the Covid-19 Pandemic: The Role of Policies" Virtual Conference National Bank of Romania & International Monetary Fundhttps://www.imf.org/en/News/Articles/2021/02/12/sp021221-introductory-remarks-alfred-kammer Opening remarks by Alfred Kammer, Director of the European Department of the IMF, at a virtual conference organised jointly by the National Bank of Romania and the IMF, on 12 February 2021

IMF Speech

ESRB report on the financial stability implications of Covid-19 support measures to protect the real economyhttps://www.bis.org/review/r210216h.htm

Introductory remarks by ProfClaudia Buch,Vice-President of the Deutsche Bundesbank, at the ESRB Press Briefing, virtual, 16 February 2021

BIS

Central Bankers'

Speech

The case for an open financial systemhttps://www.bis.org/review/r210211b.htm

Speech by MrAndrew Bailey, Governor of the Bank of England, at the Financial and Professional Services Address, Mansion House, London, 10 February 2021

BIS

Central Bankers'

Speech

Financial stability implications of support measures to protect the real economy from the COVID-19 pandemic, 16/02/2021https://www.esrb.europa.eu/pub/pdf/reports/esrb.reports210216_FSI_covid19~cf3d32ae66.en.pdf

The European Systemic Risk Board (ESRB) published a report on the financial stability implications of support measures aimed at protecting the real economy from the effects of the coronavirus (COVID-19). The report shows that the fiscal response designed to support the real economy has stabilised lending and that the financial system has continued to function. However, as risks still lie ahead, the report also identifies policy priorities in terms of the design and duration of the fiscal measures, enhanced transparency and reporting, and preparedness for further adverse scenarios.

Infographics:https://www.esrb.europa.eu/pub/pdf/reports/esrb.reports210216_FSI_covid19_infographics~314a93999a.en.pdf

Related press release:https://www.esrb.europa.eu/news/pr/date/2021/html/esrb.pr210216~4d9cec6a0b.en.html

ESRB Report + Press Release

Debt specialisation and diversification: International evidence, 17/02/2021https://www.bis.org/publ/work928.htm

The authors uncover a strong U-shape in bond financing by US firms. Firms with total debt in the range of $10 million to $100 million tend to use much less bond financing relative to loan financing than do firms with more or less total debt. There is no corresponding U-shape in less-developed Asian markets, while the advanced markets of Hong Kong SAR and Korea are in the middle. These patterns, and more generally the cross-firm variation in firms' use of bond financing relative to financing through loan facilities, are largely unrelated to either credit quality or monitoring effectiveness. This suggests that market segmentation is more likely.

Keywords: corporate bonds, capital structure, firm financing, debt specialisation, debt diversification

BIS Working Paper

Do macroprudential policies affect non-bank financial intermediation?, 11/02/2021https://www.bis.org/publ/work927.htm

The authors analyse how macroprudential policies (MaPs), largely applied to banks and to a lesser extent to borrowers affect non-bank financial intermediation (NBFI). Using data for 24 of the

BIS Working Paper