Senior Fellows/Fellows

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2026

Working Paper MWP26001

Scaling Sustainable Investing in Emerging and Developing Economies: Frictions and Opportunities

Caroline FLAMMER, Thomas GIROUX, GEOFFREY M. HEAL
Mobilizing private capital at scale is critical for financing sustainable development, particularly in emerging and developing economies (EMDEs), where capital is most needed. We conduct a global survey of senior investment decision-makers across a broad spectrum of capital providers, including asse...
Keywords: sustainable finance, blended finance, catalytic capital, impact investing, EMDEs, Global South, sustainable development
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Senior Fellows/Fellows

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2025

Challenges in Consumer Price Index Construction

W. Erwin DIEWERT, Chihiro SHIMIZU
The paper discusses many of the problems that compilers of a Consumer Price Index face. The paper also provides a survey of the four main approaches to bilateral index number theory. These approaches are used by National Statistical Offices to construct their CPIs but these approaches cannot deal wi...
Keywords: Index number theory, multilateral indexes, the chain drift problem, the lack of matching problem, test approach, stochastic approach, economic approach, hedonic regressions, the Commensurability Test
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Senior Fellows/Fellows

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2025

Working Paper MWP25017

Stablecoins A Revolutionary Payment Technology with Financial Risks

Rashad AHMED, James A. CLOUSE, Fabio NATALUCCI, Alessandro REBUCCI, Geyue SUN
The GENIUS Act, recently signed into law, establishes a dual federal and state regulatory framework for stablecoins, effectively segmenting the USD stablecoin market into GENIUS-compliant stablecoins and those that are not. This paper discusses the use cases and potential benefits of stablecoins in ...
Keywords: Cryptocurrency, digital assets, financial stability, payments, stablecoins
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Senior Fellows/Fellows

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2025

Working Paper MWP25016

Beyond the Bubble: Structural Drivers of Tokyo's High Housing Prices

Chihiro SHIMIZU
This study develops and empirically tests a unified equilibrium model of the housing market. The model integrates user-cost theory, expectation formation, and urban growth dynamics. Using monthly data for the Tokyo metropolitan area from 1986 to 2025, the model jointly estimates housing prices, rent...
Keywords: Housing prices, User cost, Price-to-rent ratio, Urban redevelopment, Cointegration (Johansen test), VECM, Counterfactual simulation, Structural appreciation, Expectations, Tokyo housing market
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Senior Fellows/Fellows

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2025

Working Paper MWP25015

Managing Financial Crises

Gianluca BENIGNO, Alessandro REBUCCI, Aliaksandr ZARETSKI
In this paper, we revisit the question of how to manage financial crises using the framework proposed by Bianchi and Mendoza (2018). We show that this model economy exhibits a multiplicity of constrained-efficient equilibria, which arises because the private shadow value of collateral influences the...
Keywords: constrained efficiency, financial crises, macroprudential policy, optimal policy, pecuniary externalities, time consistency
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