Webinar Series

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Innovation, Productivity and Challenges in the Digital Era: Asia and Beyond

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Mar 2022

Money Creation in Decentralized Finance: A Dynamic Model of Stablecoin and Crypto Shadow Banking

Ye LI
Stablecoins are at the center of debate surrounding decentralized finance. We develop a dynamic model to analyze the instability mechanism of stablecoins, the complex incentives of stablecoin issuers, and regulatory proposals. The model rationalizes a variety of stablecoin management strategies comm...
Keywords: Stablecoin, instability, regulation, decentralized finance, cash holdings, q-theory
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Annual Conference

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International Macroeconomics, Money & Banking

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May 2019

Monetary Trilemma Dilemma or Something in Between

Ruijie CHENG, Ramkishen S. RAJAN
This paper revisits the monetary “trilemma” versus “dilemma” debate by examining empirically interest‐rate policy independence for a large sample of both advanced and developing countries over the period 1973–2014. We broadly concur with the growing body of literature that suggests that ...
Keywords: Asymmetry, capital controls, dilemma, exchange‐rate regime, trilemma
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Annual Conference

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International Macroeconomics, Money & Banking

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May 2016

Monetary Policy and Financial Spillovers: Losing Traction?

Piti DISYATAT, Phurichai RUNGCHAROENKITKUL
Has financial globalisation compromised central banks' ability to manage domestic financial conditions? This paper tackles this question by studying the dynamics of bond yields encompassing 31 advanced and emerging market economies. To gauge the extent to which external financial conditions complica...
Keywords: monetary policy, financial spillovers, contagion, interest rates, trilemma, bond risk premium, capital flows
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Annual Conference

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Investment Finance, Senior Fellows/Fellows

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May 2019

Molecular Genetics Risk Aversion Return Perceptions and Stock Market Participation

Laura STARKS, Richard SIAS, H. J. TURTLE
We show that molecular variation in DNA related to cognition, personality, health, and body shape, predicts an individual’s equity market participation and risk aversion. Moreover, the molecular genetic endowments predict individuals’ return perceptions, most of which we find to be strikingly bi...
Keywords: Molecular genetics, stock market participation, risk aversion, genetic endowments
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Annual Conference

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International Macroeconomics, Money & Banking

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May 2017

Modelling Yields at the Lower Bound through Regime Shifts

Peter HORDAHL, Oreste TRISTANI
We propose a regime-switching approach to deal with the lower bound on nominal interest rates in dynamic term structure modelling. In the “lower bound regime”, the short term rate is expected to remain constant at levels close to the effective lower bound; in the “normal regime”, the short r...
Keywords: monetary policy rate expectations, regime switches, term premia, term structure of interest rates, zero lower bound
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