Statement on enhancing the UK bank resolution regime
Statement by the Bank of England
Statement by the Bank of England
Witnesses: Andrew Bailey, Sarah Breeden, Carolyn Wilkins, Jon Hall
The control of carbon emissions by policymakers poses the corporate challenge of developing an optimal carbon management policy. We provide a unified model that characterizes how firms should optimally manage emissions through production, green investment, and the trading of carbon credits. We show that carbon pricing reduces firms’ emissions but also induces firms to tilt towards more immediate yet transient types of green investment—such as abatement as opposed to innovation—as it becomes costlier to comply.
This column presents evidence on the role that US monetary policy plays in how fiscal spending affects the economy. A dovish Federal Open Market Committee (FOMC) delays policy rate increases, while a hawkish FOMC tightens monetary policy more promptly, following increased fiscal spending. We show that the dovish response supports fiscal expansions. In contrast, the hawkish response results in a GDP decline but effectively controls inflation expectations.
This column presents evidence on the role that US monetary policy plays in how fiscal spending affects the economy. A dovish Federal Open Market Committee (FOMC) delays policy rate increases, while a hawkish FOMC tightens monetary policy more promptly, following increased fiscal spending. We show that the dovish response supports fiscal expansions. In contrast, the hawkish response results in a GDP decline but effectively controls inflation expectations.
Danilo Cascaldi-Garcia, Matteo Luciani, and Michele ModugnoIn economics, we need to forecast the present because reliable and comprehensive measures of the state of the economy are released with a substantial delay and considerable measurement error. Nowcasting exploits timely data to obtain early estimates of the state of the economy and updates these estimates continuously as new macroeconomic data are released.
Christine L. Dobridge, Patrick Kennedy, Paul Landefeld, Jacob MortensonWe study changes in tax positions for U.S. C corporations following passage of the 2017 tax legislation commonly known as the Tax Cuts and Jobs Act (TCJA). While existing research has focused primarily on publicly traded companies, data limitations have prevented more holistic analyses of the corporate sector. Using a representative sample of U.S.
Seung Kwak and Charles PressIn the context of leveraged buyouts (LBOs), this paper empirically studies the relation between pre-buyout credit market conditions and the post-buyout behavior of target companies, employing a supervisory dataset to overcome limited data availability for post-buyout target financial information. We propose an LBO-specific measure of (changes of) credit market conditions--the short-term (6-month) change of credit spreads leading up to buyout close.
Rhys Bidder, Nicolas Crouzet, Margaret M. Jacobson, Michael Siemer
Dario Caldara, Francesco Ferrante, Matteo Iacoviello, Andrea Prestipino, and Albert QueraltoWe use historical data and a calibrated model of the world economy to study how a synchronous monetary tightening can amplify cross-bor