BIS
Capacity utilization drives state-dependent labor tax effects on hours
A new BIS working paper develops a business cycle model demonstrating that the aggregate hours elasticity is higher in recessions.
Paper
BIS
AI investment race leads to over-commitment, financial fragility
A new Bank for International Settlements working paper finds that the AI investment boom is characterized by excessive resource commitment and financial fragility.
BIS
AI disruption threatens private credit software exposures
A Bank for International Settlements (BIS) Bulletin finds that private credit firms, particularly Business Development Companies (BDCs), have significant exposure to software firms vulnerable to generative AI disruption.
ECB
Geoeconomic power shift fragments trade, EU must adapt
An ECB discussion paper argues that a gradual shift in geoeconomic power from the United States to China is driving fragmentation in world trade.
ECB
Tariffs shift burden, networks amplify trade war spillovers
An ECB working paper finds that a US-China tariff war generates asymmetric economic incidence, with the targeted country facing larger output contractions.
ECB
EU carbon pricing cuts emissions and drives green M&As
A new European Central Bank working paper finds that tighter EU climate regulation led high-emission firms to cut emissions and acquire greener targets.
BIS
Digital payments reshape markets, incumbents retain dominance
A new Bank for International Settlements (BIS) bulletin examines the rapidly evolving landscape of retail digital payments.
BIS
Mortgage lock-in reduces sellers, but lower rates tighten markets
A new working paper from the Federal Reserve Bank of Philadelphia finds that elevated mortgage rates cause homeowners to delay selling, reducing transaction volumes.
ECB
Non-bank groups test EU regulatory perimeter, new oversight proposed
An ECB Occasional Paper examines how large non-bank groups providing bank-like services challenge the European Union's regulatory perimeter.
BDF
Regulation fosters Bitcoin price convergence, deters illicit use
A Banque de France working paper finds that cryptocurrency regulation significantly impacts Bitcoin price deviations across countries.
BOE
Central bank narratives shape media, move inflation expectations
A Bank of England working paper finds central bank communication shapes media coverage and influences household inflation expectations.