Severe model defects drive majority of supervisory capital add-ons
Severe model defects, rather than the total number of flaws, drive supervisory capital add-ons imposed on euro area banks using internal ratings-based models.
A Federal Reserve working paper by John Geanakoplos and David Rappoport shows that uncertainty shocks steepen credit surfaces across leverage ratios.
A review of economic literature by Federal Reserve researchers shows that below-market mortgage rates reduced US household mobility by up to 17 percent post-2021.
Venture capital funds located in the United States hold approximately 930 billion euros, about six times the 150 billion euros managed by EU funds.
An ECB working paper by Bick, Dias da Silva, and Weißler reveals that 13 percent of European workers and 19 percent of U.S. workers actively search while employed.
Severe model defects, rather than the total number of flaws, drive supervisory capital add-ons imposed on euro area banks using internal ratings-based models.
The Bank of Japan's tapering of Japanese government bond purchases has pushed up long-term interest rates by approximately 25 basis points since summer 2024.
An ECB study shows energy price surges act as an open-economy income tax that hits poorest households hardest.
An ECB working paper demonstrates that incorporating production network linkages into Bayesian vector autoregressions reveals stronger and more persistent inflation spillovers from sectoral shocks, with supply chain structures significantly amplifying energy and agricultural price pass-through.
The war in the Middle East caused euro area consumer confidence to drop by 12 index points between February and April 2026, lowering nominal consumption growth from over 3 percent to 2.5 percent.
The Bank of Japan projects core inflation to reach 2.5 percent in fiscal 2026 before easing toward its 2 percent target, while real GDP growth slows to 0.6 percent.
A Federal Reserve working paper finds that cyclical shocks cause persistent scarring to potential output and the natural rate of unemployment.