All Insights

Watch, read, or listen to all insights.
Filter by
Insights / Research BriefJun 12, 2024

Discount Factors and Monetary Policy: Evidence from Dual-Listed Stocks

Quentin Vandeweyer, Minghao Yang, Constantine Yannelis
Surprise changes in US monetary policy rates directly affect asset prices, with a 100-basis point surprise cut resulting in a 30-basis point increase in the ratio of stock prices over 5 days; this effect grows after the initial announcement because higher-frequency strategies likely underestimate the effects of policy transmission.
Topics:  Monetary Policy
Insights / Research BriefApr 16, 2024

Sticky Discount Rates

Masao Fukui, Niels Joachim Gormsen, Kilian Huber
Firms often keep their nominal discount rates constant even in the face of changing inflation expectations. Increases in expected inflation therefore lower firms’ real discount rates and raise real investment.
Topics:  Monetary Policy
Insights / Research BriefApr 11, 2024

On Digital Currencies

Harald Uhlig
In a work summarizing his previous research, the author argues that prices of private digital currencies follow random walks, while for central bank digital currencies the challenge is to address three objectives, price stability, efficiency, and monetary trust, of which only two are achievable.
Topics:  Monetary Policy
Insights / Research BriefApr 03, 2024

The High Frequency Effects of Dollar Swap Lines

Rohan Kekre, Moritz Lenel
News about expanded dollar swap lines causes a reduction in liquidity premia, compression of deviations from covered interest parity (CIP), and depreciation of the dollar; also, equity prices rise and the VIX falls, while the response of long-term government bond prices is mixed.
Topics:  Monetary Policy
Insights / Research BriefMar 20, 2024

Do Information Frictions and Corruption Perceptions Kill Competition? A Field Experiment on Public Procurement in Uganda

Emanuele Colonnelli, Francesco Loiacono, Edwin Muhumuza, Edoardo Teso
Informing companies about opportunities to sell to the government does not increase their participation in public procurement, but enhancing their trust in the government’s procurement integrity does.
Topics:  Monetary Policy
Insights / Podcast episodeMar 19, 2024

Knowing When to Stop: The Unintended Consequences of Monetary Policy

Tess Vigeland, Raghuram Rajan
This episode of The Pie features a panel discussion following a talk from Raghuram Rajan,...
Topics:  Monetary Policy
Insights / Research BriefMar 07, 2024

What Drives Inflation? Lessons from Disaggregated Price Data

Elisa Rubbo
US inflation in the early phases of the COVID pandemic was entirely driven by disruptions in supply and demand across industries, whereas most of the subsequent increase in consumer prices is driven by aggregate demand.
Topics:  COVID-19, Monetary Policy
Insights / Research BriefMar 06, 2024

Fiscal Rules, Austerity in Public Administration, and Political Accountability: Evidence from a Natural Experiment in Colombia

Maria Carreri, Luis R. Martínez
Limitations to fiscal spending in Colombia reduced overspending on public administration without affecting public goods, better aligning spending with voters’ preferences.
Topics:  Development Economics, Monetary Policy