Foreign Currency Reserves 2025 - Market Notice 19 February 2025
Not for distribution, directly or indirectly, in or into the United States, Canada, Australia or Japan
Not for distribution, directly or indirectly, in or into the United States, Canada, Australia or Japan
For many corporate teams, the notion of “good conflict” is merely a myth. Most often, conflict is seen as a roadblock to success–especially when it involves clashing personalities or disagreements over strategy. But what if, in certain cases, the right kind of team conflict fuels creativity? That’s the idea behind our new research, which suggests that, handled well, some team fights might just be the key to sparking fresh ideas.
And it turns out that who is in conflict can make all the difference.
Not the picture of leadership. LMPC via Getty ImagesA glance at the day’s headlines reveals a universal truth: Leadership matters.
We construct a New-Keynesian E-DSGE model with energy disaggregation and financial intermediaries to show how energy-related fiscal and macroprudential policies interact in affecting the euro area macroeconomy and carbon emissions. When a shock to the price of fossil resources propagates through the energy and banking sector, it leads to a surge in inflation while lowering output and carbon emissions, absent policy interventions.
Not for distribution, directly or indirectly, in or into the United States, Canada, Australia or Japan
Temu has made a remarkable entry in the global e-commerce landscape, quickly becoming the fifth largest online marketplace worlwide. Critics claim Temu’s ultra-competitive pricing relies on unfair practices. Yet its success stems from the powerful—and proven—business model of its parent company, Pinduoduo, which started as an online marketplace for fresh fruit…
This paper explores the impact of bank transparency on market efficiency by comparing banks that disclose supervisory capital requirements to those that remain opaque. Due to the informational content of supervisory capital requirements for the market this opacity might hinder market efficiency. The paper estimates an average 11.5% reduction in funding costs for transparent versus opaque banks. However, there is some heterogeneity in those effects. Transparency helps the market to sort across safer and riskier banks.
Does it pay to invest in green companies? In countries where a market for carbon is functioning, such as those within the European Union, our findings suggest that it should be beneficial. Using a sample of green and brown European firms, we initially demonstrate that green companies have outperformed brown ones in recent times. Subsequently, we develop a production economy model in which brown firms acquire permits to emit carbon into the atmosphere. We find that the presence of a well-functioning carbon market could account for the green equity premium observed in our data.
A review of Perry Mehrling’s book, Money and Empire: Charles P. Kindleberger and the Dollar System, and an exploration Mehrling’s discussion of the 1982 correspondence between Charles Kindleberger and Ben Bernanke examining their theories concerning financial crises.
We document that compared to all other investor groups investment funds exhibit a distinctly procyclical behavior when financial-market beliefs about the probability of a euro-related, institutional rare disaster spike. In response to such euro disaster risk shocks, investment funds shed periphery but do not adjust core sovereign debt holdings. The periphery debt shed by investment funds is picked up by investors domiciled in the issuing country, namely banks in the short term and insurance corporations and households in the medium term.