|
on Banking |
| By: | Philipp Roderweis; Jamel Saadaoui; Francisco Serranito |
| Abstract: | An unintended by-product of asset purchases by the European Central Bank (ECB) has been a huge increase in excess reserves, leading to a structural liquidity surplus in the banking sector of the euro area. These exogenously imposed excess reserves imply higher balance sheet costs, forcing banks to offset these costs by changing their lending behavior. We observe this effect particularly in periods of low-interest rates. Thus, we identify a shock that represents an exogenous imposition of excess reserves on banks. We then employ linear and nonlinear local projection methods to analyze how lending changes in the context of unconventional monetary policy. We find that excess reserves injected by the ECB crowd out certain types of credit. An increase in excess liquidity does not stimulate lending to nonfinancial corporations in the euro area. On the contrary, it tends to discourage it while amplifying household credit for consumption and housing, as well as loans to financial corporations. Impulse response analysis via smooth local projection methods highly confirms these findings. |
| Keywords: | excess reserves, bank lending channel, bank balance sheet costs, local projection, smooth local projection. |
| JEL: | C32 E44 E51 E52 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:ulp:sbbeta:2023-34&r=ban |
| By: | Sangyup Choi; Kimoon Jeong; Jiseob Kim |
| Abstract: | This paper underscores the underappreciated role of bank mortgage lending standards in conjunction with imbalances stemming from the common monetary policy framework as drivers of divergent economic trajectories in the euro area’s core and periphery countries. To illustrate the mechanism, we compute a country-specific monetary policy stance gap and estimate the panel VAR model of credit and macroeconomy for each group. While the widening gap—the accommodative stance of the ECB relative to individual economic conditions—induces a similar increase in the demand for mortgage credit in both regions, it is followed by markedly different responses of the supply side of mortgage credit: bank mortgage lending standards are relaxed (tightened) in periphery (core) countries, which can rationalize vastly different responses in mortgage credit, residential investment, and housing prices between the two Europes. In searching for the source of different bank lending behaviors, we find that banks in core countries, subject to tighter macroprudential policies and reduced profit margins, increase cross-border lending to periphery countries, enabling them to relax lending standards toward mortgage loans. |
| Keywords: | Euro area, mortgage credit, monetary policy stance gap, bank lending survey, macroprudential policy, cross-border banking flows |
| JEL: | E21 E32 E44 F52 G21 |
| Date: | 2023–10 |
| URL: | http://d.repec.org/n?u=RePEc:een:camaaa:2023-56&r=ban |
| By: | Blix Grimaldi, Marianna (Swedish National Dept Office); Kapoor, Supriya (Trinity College Dublin) |
| Abstract: | Though unconventional monetary policy is still new, already there is a conventional wisdom that the impact of monetary policy is related to the composition of the asset mix. This turns out to be incomplete and potentially misleading. In this paper, we find more complex effects on bank lending from Quantitative Easing (QE) introduced by the Federal Reserve Bank in 2008. The novelty of our approach is to augment the model with bank-level heterogeneity. While there is a relation between lending and the type of assets purchased by the central bank, the impact on similarly QE-exposed banks is also crucially dependent on banks’ solvency and liquidity exposures. Our results highlight that it is necessary to take heterogeneity of exposure into account when assessing the effects of QE. |
| Keywords: | large-scale asset purchases; Federal Reserve; quantitative easing; heterogeneity; liquidity; solvency |
| JEL: | E52 E58 G21 |
| Date: | 2023–11–01 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:rbnkwp:0428&r=ban |
| By: | Vivek Sharma |
| Abstract: | This paper presents a model in which firms have endogenously-persistent lending relationships with banks which compete both on interest rates and collateral requirements. The economy features an endogenously-evolving lending standard which is subject to an exogenous shock. A shock to bank lending standards in this model leads to a spike in spread, drop in bank credit and amplification of macroeconomic volatility. These effects are higher at greater intensity and persistence of the lending relationships. This work shines a spotlight on how shocks to lending standards can have wider macroeconomic implications and shows how financial shocks can affect real economy. |
| Keywords: | Lending Standards, Deep Habits in Banking, Macroeconomic Fluctuations |
| JEL: | E32 E44 |
| Date: | 2023–10 |
| URL: | http://d.repec.org/n?u=RePEc:een:camaaa:2023-55&r=ban |
| By: | Manoj Kumar |
| Abstract: | Today, we have a tendency to area unit having a reasonably well-developed banking industry with completely different categories of banks public sector banks, foreign banks, personal sector banks, each recent and new generation, regional rural banks and co- operative banks with the banking company of Republic of India because the fountain Head of the system. within the banking field, there has been associate degree unprecedented growth and diversification of industry has been thus prodigious that it's no parallel within the annals of banking anyplace within the world. In most rising markets, banks’ assets comprise spill eightieth of total monetary sector assets, whereas these figures area unit considerably lower in developed economies. In most rising market economies, the 5 largest banks (usually domestic) account for over common fraction of bank assets. These figures area unit abundant lower in developed economies. Another distinction within the industry in developed and rising economies is that the degree of internationalizations of banking operations. Internationalization outlined because the share of foreign-owned banks as a share of total bank assets, tends to be abundant lower in rising economies. This pattern is, however, not uniform inside world regions. The industry has intimate with a series of great transformations within the previous couple of decades. Among the foremost necessary of them is that the modification within the style of organizations that dominate the landscape. Since the eighties, banks have redoubled the scope and scale of their activities and several other banks became terribly giant establishments with a presence in multiple regions of the country. The paper examines the Trends and progress of Indian industry. The Indian banking system consists of 12 public sector banks, 22 private sector banks, 44 foreign banks, 43 regional rural banks, 1, 484 urban cooperative banks and 96, 000 rural cooperative banks in addition to cooperative credit institutions. As of September 2021, the total number of ATMs in India reached 213, 145 out of which 47.5% are in rural and semi-urban areas. As of July 29, 2022 bank credit stood at Rs. 123.69 lakh crore (US$ 1, 553.23 billion). As of July 29, 2022 credit to non-food industries stood at Rs. 123.36 lakh crore (US$ 1.54 trillion). Key words: Indian Banking Sector, rising Trends & Progress and rising Economies. |
| Date: | 2023–09 |
| URL: | http://d.repec.org/n?u=RePEc:vor:issues:2023-47-06&r=ban |
| By: | Carl White |
| Abstract: | Federal banking regulators have issued updated guidance on funding and liquidity risk management to include the importance of contingency funding plans. |
| Keywords: | banking regulators; liquidity risk; bank contingency funding plans |
| Date: | 2023–09–28 |
| URL: | http://d.repec.org/n?u=RePEc:fip:l00001:97023&r=ban |
| By: | Gustavo Joaquim; Bernardus Doornik; GJosé Renato Haas Ornelas |
| Abstract: | We use heterogeneous exposure to large bank mergers to estimate the effect of bank competition on both financial and real variables in local Brazilian markets. Using detailed administrative data on loans and firms, we employ a difference-in- differences empirical strategy to identify the causal effect of bank competition. Following M&A episodes, spreads increase and there is persistently less lending in exposed markets. We also find that bank competition has real effects: a 1% increase in spreads leads to a 0.2% decline in employment. We develop a tractable model of heterogeneous firms and concentration in the banking sector. In our model, the semi-elasticity of credit to lending rates is a sufficient statistic for the effect of concentration on credit and output. We estimate this elasticity and show that the observed effects in the data and predicted by the model are consistent. Among other counterfactuals, we show that if the Brazilian lending spread were to fall to the world level, output would increase by approximately 5%. |
| Keywords: | bank competition, mergers and acquisitions, lending, spreads, output |
| JEL: | G21 G34 E44 |
| Date: | 2023–10 |
| URL: | http://d.repec.org/n?u=RePEc:bis:biswps:1134&r=ban |
| By: | António Afonso; José Alves; Sofia Monteiro |
| Abstract: | We analyze domestic, foreign, and central banks holdings of public debt for 31 countries for the period of 1989-2022, applying panel regressions and quantile analysis. We conclude that an increase in sovereign risk raises the share of domestic banks’ portfolio of public debt and reduces the percentage holdings in the case of central banks. Better sovereign ratings also increase (decrease) the share of commercial (central) banks’ holdings. Furthermore, the effects of an increment in the risk for domestic investors have increased since the 2010 financial crisis. |
| Keywords: | banking, sovereign debt, sovereign risk, financial crisis, ratings |
| JEL: | C21 E58 G24 G32 H63 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_10692&r=ban |
| By: | Shijia Song; Handong Li |
| Abstract: | Bank crisis is challenging to define but can be manifested through bank contagion. This study presents a comprehensive framework grounded in nonlinear time series analysis to identify potential early warning signals (EWS) for impending phase transitions in bank systems, with the goal of anticipating severe bank crisis. In contrast to traditional analyses of exposure networks using low-frequency data, we argue that studying the dynamic relationships among bank stocks using high-frequency data offers a more insightful perspective on changes in the banking system. We construct multiple recurrence networks (MRNs) based on multidimensional returns of listed banks' stocks in China, aiming to monitor the nonlinear dynamics of the system through the corresponding indicators and topological structures. Empirical findings indicate that key indicators of MRNs, specifically the average mutual information, provide valuable insights into periods of extreme volatility of bank system. This paper contributes to the ongoing discourse on early warning signals for bank instability, highlighting the applicability of predicting systemic risks in the context of banking networks. |
| Date: | 2023–10 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2310.10283&r=ban |
| By: | Raphael Auer; Giulio Cornelli; Christian Zimmermann |
| Abstract: | We present a ranking of journals geared toward measuring the policy relevance of research. We compute simple impact factors that count only citations made in central bank publications, such as their working paper series. Whereas this ranking confirms the policy relevance of the major general interest journals in the field of economics, the major finance journals fare less favourably. Journals specialising in monetary economics, international economics and financial intermediation feature highly, but surprisingly not those specialising in econometrics. The ranking is topped by the Brookings Papers on Economic Activity, followed by the Quarterly Journal of Economics and the Journal of Monetary Economics, the American Economic Journal: Macroeconomics, and the Journal of Political Economy. |
| Keywords: | central banks, citations, academic journals, ranking |
| JEL: | A11 E50 E58 |
| Date: | 2023–10 |
| URL: | http://d.repec.org/n?u=RePEc:bis:biswps:1139&r=ban |
| By: | Tom Akana; Valeria Zeballos Doubinko |
| Abstract: | In this paper, we explore the relationship between consumers’ use of buy now, pay later (BNPL) and their credit reports. BNPL is a deferred payment tool that allows consumers to split transactions into four payments over six weeks. Unlike many other financial products, it is offered primarily by fintech companies and advertised to consumers as free from fees and credit checks. These providers typically do not report a consumer’s use of BNPL and subsequent repayment behavior to credit bureaus, which makes studies of BNPL users’ credit more challenging. In this analysis, however, we leverage a unique data set combining anonymized survey data and appended credit bureau data collected by the market research firm Competiscan, on behalf of the Consumer Finance Institute (CFI) of the Federal Reserve Bank of Philadelphia. |
| Keywords: | buy now; pay later; BNPL; point-of-sale payments; consumer survey; credit reporting |
| JEL: | D10 D18 |
| Date: | 2023–09–28 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedpcd:96954&r=ban |
| By: | Miguel Ampudia; Manuel A. Muñoz; Frank Smets; Alejandro Van der Gothe |
| Abstract: | We provide evidence that the ECB system-wide dividend recommendation (SWDR) of March 2020 contributed to sustain lending, had a negative but moderate and transitory impact on bank stock prices and largely operated as a deferral of dividend payouts rather than as a dividend cut. Then, we develop a quantitative macro-banking DSGE model that accounts for this evidence and captures the key mechanism through which SWDRs operate to study the general equilibrium effects of the ECB SWDR. The measure contributed to sustain aggregate bank lending and mitigate the adverse impact of the COVID-19 shock on economic activity by safeguarding euro area banks' capitalization. Welfare-maximizing SWDRs stabilize the economy regardless of the shock type but they only induce significant welfare gains in response to financial shocks. |
| Keywords: | dividend recommendation, dividend prudential target (DPT), COVID-19, usable capital buffers, welfare |
| JEL: | E44 E58 E61 |
| Date: | 2023–10 |
| URL: | http://d.repec.org/n?u=RePEc:bis:biswps:1131&r=ban |
| By: | Lena Dräger |
| Abstract: | This paper surveys the literature on the role and effects of central bank communication with the general public, particularly regarding the formation of macroeconomic expectations. It starts by giving a brief overview of the recent “communication revolution” in central bank communication. The challenges for central bank communication with the public are outlined by surveying the evidence about low average knowledge on inflation and monetary policy in the population. Next, I evaluate the effects of direct communication, distinguishing between challenges to getting the attention of the public and effects of information on the public’s inflation expectations once attention is gained. Finally, I review the role of the media as transmitter of central bank communication to the public. |
| Keywords: | central bank communication, consumers, households, literature survey, RCT studies |
| JEL: | E52 E58 D84 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_10713&r=ban |
| By: | Ms. Ruo Chen; Esti Kemp |
| Abstract: | Liability Driven Investment (LDI) funds were at the center of the severe stress that emerged in the UK gilt market in the aftermath of the September 2022 UK "mini-budget". The episode, which came on the heels of the “Dash for Cash” and “Archegos” stress episodes in the previous two years, highlights underlying vulnerabilities in the large and diverse non-bank financial institution (NBFI) sector. This paper seeks a deeper understanding of the factors that amplified the gilt market turmoil which ultimately led the Bank of England (BoE) to undertake temporary gilt purchases on financial stability grounds in late September/early October 2022 to restore orderly market conditions and enable LDI funds to build their capital positions. With the gilt market stress and the BoE’s purchases now fully unwound, this paper identifies the key reasons for the success of the BoE’s intervention. Then, drawing also on findings of the 2022 UK Financial Sector Assessment Program (FSAP), the paper discusses key gaps and policy issues related to the monitoring of financial stability risks in the broader NBFI sector for both individual jurisdictions and international standard-setting bodies. |
| Keywords: | Defined benefit pension funds; liability driven investment; NBFIs; Bank of England financial stability intervention; liquidity management; central bank liquidity backstops; NBFI surveillance; financial stability; gilt market turmoil; LDI crisis; central bank liquidity; BoE's purchase; NBFI sector; Pension spending; Nonbank financial institutions; Financial sector stability; Liquidity; Financial sector risk; Global; Europe |
| Date: | 2023–09–29 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:2023/210&r=ban |
| By: | Natkamon Tovanich (CREST - Centre de Recherche en Économie et Statistique - ENSAI - Ecole Nationale de la Statistique et de l'Analyse de l'Information [Bruz] - X - École polytechnique - ENSAE Paris - École Nationale de la Statistique et de l'Administration Économique - CNRS - Centre National de la Recherche Scientifique, X - École polytechnique); Myriam Kassoul (CREST - Centre de Recherche en Économie et Statistique - ENSAI - Ecole Nationale de la Statistique et de l'Analyse de l'Information [Bruz] - X - École polytechnique - ENSAE Paris - École Nationale de la Statistique et de l'Administration Économique - CNRS - Centre National de la Recherche Scientifique, X - École polytechnique); Simon Weidenholzer (University of Essex); Julien Prat (CREST - Centre de Recherche en Économie et Statistique - ENSAI - Ecole Nationale de la Statistique et de l'Analyse de l'Information [Bruz] - X - École polytechnique - ENSAE Paris - École Nationale de la Statistique et de l'Administration Économique - CNRS - Centre National de la Recherche Scientifique, CNRS - Centre National de la Recherche Scientifique, X - École polytechnique) |
| Abstract: | We study financial contagion in Compound V2, a decentralized lending protocol deployed on the Ethereum blockchain. We explain how to construct the balance sheets of Compound's liquidity pools and use our methodology to characterize the financial network. Our analysis reveals that most users either borrow stablecoins or engage in liquidity mining. We then study the robustness of Compound through a series of stress tests, identifying the pools that are most likely to set off a cascade of defaults. |
| Keywords: | systemic risk, decentralized finance, financial contagion, financial network, stress test |
| Date: | 2023–11–30 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04221228&r=ban |
| By: | Michael Boutros; Nuno Clara; Francisco Gomes |
| Abstract: | In the United States, student debt currently represents the second largest component of consumer debt, just after mortgage loans. Repayment of those loans reduces disposable income early in their life cycle when marginal utility is particularly high, and limits households' ability to build a buffer stock of wealth to insure against background risks. In this paper we study alternative student debt contracts, which offer a 10-year deferral period. Individuals either defer principal payments only ("Principal Payment Deferral", PPD) or all payments ("Full Payment Deferral", FPD) with the missed interest payments added to the value of the debt outstanding. We first calibrate an equilibrium with the current contracts, and then solve for counterfactual equilibria with the PPD or FPD contracts. We find that both alternatives generate economically large welfare gains, which are robust to different assumptions about the behavior of the lenders and borrower preferences. We decompose the gains into the percentages resulting from loan repricing and from the deferral of debt repayments. We compare these alternative contracts with the current changes in income driven repayment plans being proposed by the current U.S. administration and show that they dominate such proposals. Crucially, the PPD and FPD contracts deliver similar welfare gains to the debt relief program considered by the administration, with no impact on the government budget constraint. |
| Keywords: | Asset pricing; Economic models; Financial markets; Labour markets; Market structure and pricing |
| JEL: | E2 G5 H3 |
| Date: | 2023–10 |
| URL: | http://d.repec.org/n?u=RePEc:bca:bocawp:23-54&r=ban |
| By: | Athanasios Orphanides (Professor of the Practice of Global Economics and Management at the MIT Sloan School of Management (E-mail: athanasios.orphanides@mit.edu)) |
| Abstract: | This paper examines the policy experience of the Fed, ECB and BOJ during and after the Covid-19 pandemic and draws lessons for monetary policy strategy and its communication. All three central banks provided appropriate accommodation during the pandemic but two failed to unwind this accommodation in a timely manner. The Fed and ECB guided real interest rates to inappropriately negative levels as the economy recovered from the pandemic, fueling high inflation. The policy error can be traced to decisions regarding forward guidance on policy rates that delayed lift-off while the two central banks continued to expand their balance sheets. The Fed and the ECB fell into the forward guidance trap. This could have been avoided if policy were guided by a forward-looking rule that properly adjusted the nominal interest rate with the evolution of the inflation outlook. |
| Keywords: | Monetary policy strategy, Forward guidance, Policy rules |
| JEL: | E52 E58 E61 |
| Date: | 2023–10 |
| URL: | http://d.repec.org/n?u=RePEc:ime:imedps:23-e-06&r=ban |
| By: | Lu\'is A. V. Cat\~ao; Jan Ditzen; Daniel Marcel te Kaat |
| Abstract: | We show that fluctuations in the ratio of non-core to core funding in the banking systems of advanced economies are driven by a handful of global factors of both real and financial natures, with country-specific factors playing no significant roles. Exchange rate flexibility helps insulate the non-core to core ratio from such global factors but only significantly so outside periods of major global financial disruptions, as in 2008-2009. |
| Date: | 2023–10 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2310.11552&r=ban |
| By: | Rajashri Chakrabarti; Daniel Mangrum; Sasha Thomas; Wilbert Van der Klaauw |
| Abstract: | After forty-three months of forbearance, the pause on federal student loan payments has ended. Originally enacted at the onset of the COVID-19 pandemic in March 2020, the administrative forbearance and interest waiver lasted until September 1, 2023, and borrowers’ monthly payments resumed this month. As discussed in an accompanying post, the pause on student loan payments afforded borrowers over $260 billion in waived payments throughout the pandemic, supporting borrowers’ consumption and savings over the last three years. In this post, we analyze responses of student loan borrowers to special questions in the August 2023 SCE Household Spending Survey designed to gauge the expected impact of the payment resumption on future spending growth, the risk of credit delinquency for borrowers, and the economy at large. The findings suggest that the payment resumption will have a relatively small overall effect on consumption, on the order of a 0.1 percentage point reduction in aggregate spending from August levels, and a (delayed) return of student loan delinquency rates back to pre-pandemic levels. Across groups, we see little variation in spending responses but find that low-income borrowers, female borrowers, those with less than a bachelor’s degree, and those who were not in repayment before the pandemic expect the highest likelihood of missed student loan payments. |
| Keywords: | household spending; student loans |
| JEL: | D14 I22 |
| Date: | 2023–10–18 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fednls:97184&r=ban |
| By: | Anna L. SOBIECH; UCHIDA Hirofumi |
| Abstract: | We analyse the usage of green loans under a public green loan program and document a positive link with borrower financial health. Green loan users have better credit ratings, higher sales growth, and lower leverage. The link remains stable in face of significantly changing conditions for green investments and heightened green policy uncertainty induced by changes in governments’ green policy mix. Green loan users also exhibit better ex-post performance and lower default probability. The results imply that the screening undertaken by the lender matters for efficient green loan provision and highlight the important role of public loan programs in the green policy mix. |
| Date: | 2023–10 |
| URL: | http://d.repec.org/n?u=RePEc:eti:dpaper:23072&r=ban |
| By: | Lena Dräger; Michael J. Lamla; Michael Lamla |
| Abstract: | After the financial crisis of 2008, central banks around the world have increased their communication efforts to reach consumers, with the aim of both guiding and anchoring their inflation expectations. For the expectations channel of monetary policy to work as intended, central banks need a thorough understanding of the formation process of expectations by the general public and of the relationship between expectations and economic choices. This warrants reliable and detailed data on consumers’ expectations of macroeconomic variables such as inflation or interest rates. We thus survey the available survey data and issues regarding the measurement of macroeconomic expectations. Furthermore, we discuss the research frontier on important aspects of the expectations channel: We evaluate the evidence on whether expectations are formed consistently with standard macroeconomic relationships, discuss the insights with respect to the anchoring of inflation expectations, explore the role of narratives and preferences and lastly, we survey the research on causal effects of central bank communication on expectations and economic choices. |
| Keywords: | consumers’ macroeconomic expectations, central bank communication, survey data |
| JEL: | E52 E30 D84 C83 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_10709&r=ban |
| By: | Ms. Burcu Hacibedel; Hector Perez-Saiz |
| Abstract: | Failures in the crypto space—including the fall of Terra USD and the FTX debacle—have sparked calls for strengthening countries’ policy frameworks for crypto assets, including by enhanced regulation and supervision. How have these heightened concerns about crypto assets been picked up in systemic risk assessment, and what can be done going forward? In this paper, we introduce a conceptual macrofinancial framework to understand and track systemic risks stemming from crypto assets. Specifically, we propose a country-level Crypto-Risk Assessment Matrix (C-RAM) to summarize the main vulnerabilities, useful indicators, potential triggers and potential policy responses related to the crypto sector. We also discuss how experts and officials can weave in specific vulnerabilities stemming from crypto asset activity into their assessment of systemic risk, and how they can provide policy advice and take action to help contain systemic risks when needed. |
| Keywords: | Crypto assets; vulnerabilities; systemic risk; macrofinancial; analyzing Macrofinancial risk; macro-prudential risk; country-level Crypto-Risk Assessment Matrix; micro-prudential risk; price fluctuation; Virtual currencies; Financial sector; Currencies; Credit risk; Blockchain and DLT; Global |
| Date: | 2023–09–29 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:2023/214&r=ban |
| By: | Sebastian Doerr; Jon Frost; Leonardo Gambacorta; Vatsala Shreeti |
| Abstract: | The entry of big tech companies into the financial services sector can bring significant benefits in terms of efficiency and financial inclusion. Yet big techs can also quickly dominate markets, engage in discriminatory behaviour, and harm data privacy. This leads to the emergence of new trade-offs between policy goals such as financial stability, competition and privacy. Regulators, both domestically and internationally, are actively working to address these trade-offs. This paper provides an overview over the state of the literature and the policy debate. |
| Keywords: | big techs, financial inclusion, competition, financial stability, data privacy |
| JEL: | E51 G23 O31 |
| Date: | 2023–10 |
| URL: | http://d.repec.org/n?u=RePEc:bis:biswps:1129&r=ban |
| By: | GUNJI Hiroshi; ONO Arito; SHIZUME Masato; UCHIDA Hirofumi; YASUDA Yukihiro |
| Abstract: | This study estimates the unit cost of financial intermediation in Japan over the period 1954‒2020. We measure the cost as the ratio of financial intermediaries’ income (financial income) to the financial output provided to non-financial end-users by integrating hand-collected data from various sources. To measure financial income, we use semi-aggregated data to take into account several income components that are not considered in the financial industry’s value added in the current System of National Accounts. We find that the unit cost of financial intermediation in Japan exhibits a secular decline. No similar decline is observed in the United States, Germany, and United Kingdom, where the unit cost of financial intermediation has been relatively stable over time. The decrease in Japan’s unit cost is due to the stagnation of financial income, even though financial output increased. The stagnation of financial income is due to the absence of growth in asset management services and the decrease in net interest income from loans and deposits. |
| Date: | 2023–10 |
| URL: | http://d.repec.org/n?u=RePEc:eti:dpaper:23076&r=ban |
| By: | Vojtech Bartos; Silvia Castro; Kristina Czura; Timm Opitz |
| Abstract: | We analyze gender discrimination in entrepreneurship finance. Access to finance is crucial for entrepreneurial success, yet constraints for women are particularly pronounced. We structurally unpack whether loan officers evaluate business ideas and implementation constraints differently for male and female entrepreneurs, both as individual entrepreneurs or in entrepreneurial teams. In a lab-in-the-field experiment with Ugandan loan officers, we document gender discrimination of individual female entrepreneurs, but no gender bias in the evaluation of entrepreneurial teams. Our results suggest that the observed bias is not driven by animus against female entrepreneurs but rather by differential beliefs about women’s entrepreneurial ability or implementation constraints in running a business. Policies aimed at team creation for start-up enterprises may have an additional benefit of equalizing access to finance and ultimately stimulating growth. |
| Keywords: | access to finance, gender bias, entrepreneurship, lab-in-the-field |
| JEL: | C93 G21 J16 L25 L26 O16 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_10719&r=ban |
| By: | Kishor, N. Kundan; Pratap, Bhanu |
| Abstract: | This paper explores the effects of India's adoption of inflation targeting (IT) as a monetary policy framework in 2016 on long-term inflation expectations in the private sector. Using data from 2010 to 2022, including inflation forecasts from professional forecasters and an inflation sentiment index derived from newspaper articles, our analysis assesses the impact of inflation sentiment on both long-run and short-run inflation expectations. Our findings suggest that post-2016, long-term inflation expectations became less sensitive to inflation sentiment, indicating that India's transition to IT may have contributed to anchoring these expectations in line with the central bank's target. |
| Keywords: | Inflation Targeting, Inflation Expectations, Unobserved Component Model, Inflation Sentiment, Indian Economy |
| JEL: | E31 E52 E58 |
| Date: | 2023–10–23 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:118951&r=ban |
| By: | Celso Brunetti; Nathan Foley-Fisher; Stéphane Verani |
| Abstract: | Financial intermediaries manage myriad interest rate risk exposures. We propose a new method to measure financial intermediaries' residual interest rate risk using high-frequency financial market data. Our method exploits all available high-frequency information and is valid under extremely weak assumptions. Applying the method to U.S. life insurers, we find their interest rate risk management strategies are generally effective. However, life insurers are more sensitive to changes in long-term interest rates than property and casualty insurers. We show that the term premium helps to explain the difference in sensitivities between the two types of insurer. |
| Keywords: | Financial institutions; Interest rate risk management; High-frequency financial econometrics; Subsampling; Life insurers |
| JEL: | G20 C58 |
| Date: | 2023–10–12 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedgfe:2023-67&r=ban |
| By: | Conor B. Hamill; Raad Khraishi; Simona Gherghel; Jerrard Lawrence; Salvatore Mercuri; Ramin Okhrati; Greig A. Cowan |
| Abstract: | Interest-free promotions are a prevalent strategy employed by credit card lenders to attract new customers, yet the research exploring their effects on both consumers and lenders remains relatively sparse. The process of selecting an optimal promotion strategy is intricate, involving the determination of an interest-free period duration and promotion-availability window, all within the context of competing offers, fluctuating market dynamics, and complex consumer behaviour. In this paper, we introduce an agent-based model that facilitates the exploration of various credit card promotions under diverse market scenarios. Our approach, distinct from previous agent-based models, concentrates on optimising promotion strategies and is calibrated using benchmarks from the UK credit card market from 2019 to 2020, with agent properties derived from historical distributions of the UK population from roughly the same period. We validate our model against stylised facts and time-series data, thereby demonstrating the value of this technique for investigating pricing strategies and understanding credit card customer behaviour. Our experiments reveal that, in the absence of competitor promotions, lender profit is maximised by an interest-free duration of approximately 12 months while market share is maximised by offering the longest duration possible. When competitors do not offer promotions, extended promotion availability windows yield maximum profit for lenders while also maximising market share. In the context of concurrent interest-free promotions, we identify that the optimal lender strategy entails offering a more competitive interest-free period and a rapid response to competing promotional offers. Notably, a delay of three months in responding to a rival promotion corresponds to a 2.4% relative decline in income. |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2311.01901&r=ban |
| By: | Roshan Iyer |
| Abstract: | We analyze returns and volatility spillovers among a representative set of crypto and financial assets. The magnitude of spillovers increases during periods of heightened turbulence due to negative economic-financial news, crypto market events, or exogenous shocks. There is evidence of increasing spillovers over time, with a peak during the COVID-19 pandemic, implying growing interdependence. Crypto assets predominantly transmit spillovers to financial markets, though reversals occur during periods of financial stress. The increased correlation during risk-off episodes suggests that crypto assets could serve as important conduits for financial market shocks, generating financial stability risks. |
| Keywords: | Cryptocurrencies; Crypto assets; Bitcoin; Spillovers; Return and Volatility Connectedness |
| Date: | 2023–09–29 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:2023/213&r=ban |
| By: | Giovanni Borraccia; Mr. Raphael A Espinoza; Vincenzo Guzzo; Romain Lafarguette; Fuda Jiang; Vina Nguyen; Miguel A. Segoviano; Mr. Philippe Wingender |
| Abstract: | We develop a new measure of financial conditions (FCs) that targets the growth of financial liabilities using the partial least square methodology. We then estimate financial condition indexes (FCIs) across European economies, both at the aggregate and sectoral levels. We decompose the changes in FCs into several factors including credit availability and costs, price of risk, policy stance, and funding constraints. Our results show that FCs loosened during the pandemic thanks to policy support but started to tighten significantly since mid-2021. Using the inverse probability weighting method over the sample period from 2000 to 2023, we find that a shift from a neutral to a tight FCI regime such as the ongoing episode for most European countries will on average lower output and inflation by 2.2 percent and 0.7 percentage points respectively and increase unemployment by 0.3 percentage points over a three-year horizon. |
| Keywords: | Financial condition index; partial least square; funding constraints; credit availability and costs; price of risk; policy stance; inverse probability weighting; financial conditions in Europe; FCI regime; IMF working paper 2023/209; FCI indicator; measure of financial conditions; Inflation; Asset prices; Monetary tightening; Credit; Financial cycles; Europe; Global |
| Date: | 2023–09–29 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:2023/209&r=ban |
| By: | Olivo, Victor |
| Abstract: | This paper discusses numerous and serious conceptual criticisms of arguments and theories that consider that inflation and the price level are exclusively a fiscal phenomenon in which money plays no distinctive role. The price level, substantial acceleration of the inflation rate or sustained inflation rates of two digits or more cannot be explained by expectations or changes in expectations alone as Sargent (1982), Woodford (2008) and the FTPL proponents claim. The empirical evidence obtained using cointegration and error correction models estimated using linear and non-linear techniques provides robust indication that money plays a crucial role in understanding the long-run evolution of the price level and the short-run dynamics of inflation. |
| Keywords: | Price Level; Inflation; Monetarism, Monetary, Monetary Base, Monetary Policy, Money, Money Stock. |
| JEL: | E31 E52 |
| Date: | 2023–10–22 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:118993&r=ban |
| By: | Mr. Pragyan Deb; Julia Estefania-Flores; Melih Firat; Davide Furceri; Siddharth Kothari |
| Abstract: | This paper revisits the transmission of monetary policy by constructing a novel dataset of monetary policy shocks for an unbalanced sample of 33 advanced and emerging market economies during the period 1991Q2-2023Q2. Our findings reveal that tightening monetary policy swiftly and negatively impacts economic activity, but the effects on inflation and inflation expectations takes time to fully materialize. Notably, there exist significant heterogeneities in the transmission of monetary policy across countries and time, depending on structural characteristics and cyclical conditions. Across countries, monetary policy is more effective in countries with flexible exchange rate regime, more developed financial systems, and credible monetary policy frameworks. In addition, we find that monetary policy transmission is stronger when uncertainty is low, financial conditions are tight and monetary policy is coordinated with fiscal policy—that is, when the stances move in the same direction. |
| Keywords: | Monetary policy transmission; heterogeneity; inflation; statedependence |
| Date: | 2023–10–17 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:2023/204&r=ban |
| By: | Hassan El Yaagoubi (FSE - Faculté des sciences de l’Education de Rabat); Khalid El Baz (FSE - Faculté des sciences de l’Education de Rabat) |
| Abstract: | The Covid-19 crisis has deeply impacted the functioning of organizations, forcing them to completely rethink their operations. Indeed, this health crisis has accelerated the digitization of tools and the restructuring of internal processes. However, it is important not to overlook the significant challenges this profound change entails in terms of team management. This unprecedented crisis has truly disrupted the status quo, prompting managers to fundamentally reconsider work organization and demonstrate adaptability, creativity, and leadership to successfully overcome these unprecedented challenges. As a result, human resource managers are faced with a major challenge: implementing new forms of steering, management, and innovative strategies, placing digital transformation at the core of their concerns. Furthermore, it is crucial to consider the impact of this transformation on individuals, placing the human factor at the center of reflections. This study aims to analyze the contribution of digital transformation to the field of human resource management, specifically focusing on the advantages of agile management and digitalization in ensuring business continuity during crises, particularly the Covid-19 crisis. This research adopts a positivist epistemological standpoint, utilizing a hypothetico-deductive reasoning approach and employing a quantitative research methodology to explore our research questions. The study is based on questionnaires completed by 44 key individuals from various Moroccan banks who willingly participated in our survey. The analysis of the results highlighted the contribution of digital transformation to HR management in crisis situations. Indeed, organizations that had already embraced digital transformation prior to the Covid-19 crisis were able to seamlessly ensure business continuity during this challenging period, which would not have been possible without digital technologies. Thus, this crisis served as a wake-up call for organizations that had not yet embarked on their digital transformation journey. However, it is important to acknowledge that this research has certain limitations. Specifically, our study focuses specifically on the banking sector, which means that the findings cannot be generalized to other sectors, particularly the public sector, which often adopts different management approaches compared to the banking sector. |
| Abstract: | La crise liée au Covid-19 a profondément impacté le fonctionnement des organisations, les obligeant à repenser entièrement leur mode de fonctionnement. En effet, cette crise sanitaire a accéléré la digitalisation des outils et la refonte des processus internes. Cependant, il ne faut pas négliger que ce changement profond implique également des défis majeurs en termes de gestion d'équipe. Cette crise sans précédent a véritablement bouleversé la donne, incitant les managers à repenser en profondeur l'organisation du travail et de faire preuve d'adaptabilité, de créativité et de leadership pour relever ces défis inédits avec succès. Ainsi, les responsables des ressources humaines se trouvent face à un défi de taille : mettre en place de nouvelles formes de pilotage, de management et de stratégie innovante, plaçant ainsi la transformation digitale au coeur de leurs préoccupations. Par ailleurs, Il est primordial de considérer l'impact de cette transformation sur les individus, en mettant l'humain au centre des réflexions. Cette étude a pour but d'analyser la contribution de la transformation digitale au domaine du management des ressources humaines, en se penchant spécifiquement sur les avantages du management agile et de la digitalisation pour assurer la continuité des activités en période de crise, notamment durant la crise du Covid-19. Cette recherche s'inscrit dans un positionnement épistémologique positiviste, avec l'adoption d'une logique de raisonnement hypothético-déductif et en adoptant une approche de recherche quantitative pour explorer notre problématique. Notre étude repose sur des questionnaires renseignés par 44 personnes-ressources appartenant à différentes banques marocaines, qui ont accepté de participer à notre enquête. L'analyse des résultats obtenus a mis en exergue l'apport de la transformation digitale au management RH en situation de crise. En, effet, les organisations ayant adopté une transformation digitale avant la crise liée au Covid 19 ont pu assurer aisément la continuité de leurs activités pendant cette crise, chose qui n'aurait jamais été possible sans le digital. Ainsi, cette crise a sonné l'alarme des organisations n'ayant pas encore entamé leur transformation digitale. Par ailleurs, Il est important de noter que cette recherche présente certaines limites. Effectivement, notre étude se concentre spécifiquement sur le secteur bancaire, ce qui signifie que les résultats obtenus ne peuvent pas être généralisés à d'autres secteurs, en particulier le secteur public qui adopte souvent des modes de management différents de ceux utilisés dans le secteur bancaire. |
| Keywords: | Human resources management, Banking sector, Crisis situation, Health crisis Covid 19, Digital transformation, Agility, Management des ressources humaines, Secteur bancaire, Crise Sanitaire Covid 19, Transformation digitale, agilité |
| Date: | 2023–10–05 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04230708&r=ban |
| By: | Tom Akana; Valeria Zeballos Doubinko |
| Abstract: | This paper explores the relationship between consumers’ use of buy now, pay later (BNPL) and their credit reports. We conduct this analysis to evaluate concerns that BNPL use could negatively affect consumers’ financial health. |
| Keywords: | buy now pay later; BNPL; point-of-sale payments; consumer survey; credit reporting |
| JEL: | D10 D18 |
| Date: | 2023–09–29 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedpdp:97223&r=ban |
| By: | Jorge Miranda-Pinto; Mr. Andrea Pescatori; Ervin Prifti; Guillermo Verduzco-Bustos |
| Abstract: | Monetary policy influences inflation dynamics by exerting impact on a diverse array of commodity prices. At high frequencies, we show that a 10 basis points increase in US monetary policy rate reduces commodity prices between 0.5% and 2.5%, after 18 to 24 business days. Beyond the dollar appreciation channel, the effects are larger for highly storable and industrial commodities, consistent with the cost of carry and the expected demand channel. We then study the quantitative importance of the commodity-price channel of monetary policy on domestic and international inflation at longer horizons (6-36 months). The results indicate that the response of commodity prices—oil, base metals, and food prices—to monetary policy accounts for 47% of the total effect of US monetary policy on US headline inflation, and 57% of the effect of US monetary policy on other countries’ headline inflation. The commodity price channel on core inflation is smaller and mainly driven by base metal prices. Finally, the commodity-price channel of ECB monetary policy is smaller, and it mainly operates through its effect on energy prices. |
| Keywords: | Monetary Policy; US monetary policy shock; ECB monetary policy shock; Commodity prices; commodity price channel; inflation; energy prices; food prices; metals prices; core inflation |
| Date: | 2023–10–10 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:2023/215&r=ban |
| By: | Priyanka Bose; Dipanjan Das; Fabio Gritti; Nicola Ruaro; Christopher Kruegel; Giovanni Vigna |
| Abstract: | As cryptocurrency evolved, new financial instruments, such as lending and borrowing protocols, currency exchanges, fungible and non-fungible tokens (NFT), staking and mining protocols have emerged. A financial ecosystem built on top of a blockchain is supposed to be fair and transparent for each participating actor. Yet, there are sophisticated actors who turn their domain knowledge and market inefficiencies to their strategic advantage; thus extracting value from trades not accessible to others. This situation is further exacerbated by the fact that blockchain-based markets and decentralized finance (DeFi) instruments are mostly unregulated. Though a large body of work has already studied the unfairness of different aspects of DeFi and cryptocurrency trading, the economic intricacies of non-fungible token (NFT) trades necessitate further analysis and academic scrutiny. The trading volume of NFTs has skyrocketed in recent years. A single NFT trade worth over a million US dollars, or marketplaces making billions in revenue is not uncommon nowadays. While previous research indicated the presence of wrongdoings in the NFT market, to our knowledge, we are the first to study predatory trading practices, what we call opportunistic trading, in depth. Opportunistic traders are sophisticated actors who employ automated, high-frequency NFT trading strategies, which, oftentimes, are malicious, deceptive, or, at the very least, unfair. Such attackers weaponize their advanced technical knowledge and superior understanding of DeFi protocols to disrupt trades of unsuspecting users, and collect profits from economic situations that are inaccessible to ordinary users, in a "supposedly" fair market. In this paper, we explore three such broad classes of opportunistic strategies aiming to realize three distinct trading objectives, viz., acquire, instant profit generation, and loss minimization. |
| Date: | 2023–09 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2310.06844&r=ban |
| By: | YiLi Chien; Harold L. Cole; Hanno Lustig |
| Abstract: | As a result of the BoJ's large-scale asset purchases, the consolidated Japanese government borrows mostly at the floating rate from households and invests in longer-duration risky assets to earn an extra 3% of GDP. We quantify the impact of Japan's low-rate policies on its government and households. Because of the duration mismatch on the government balance sheet, the government's fiscal space expands when real rates decline, allowing the government to keep its promises to older Japanese households. A typical younger Japanese household does not have enough duration in its portfolio to continue to finance its spending plan and will be worse off. Low-rate policies tax younger, poorer and less financially sophisticated households. |
| Keywords: | fiscal policy; monetary policy; public debt sustainability; financial repression |
| JEL: | G12 E62 |
| Date: | 2023–11–02 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedlwp:97227&r=ban |
| By: | Pani, Erica |
| Abstract: | We examine the ‘institutional configuration’ that makes land titles work as collateral in Tanzania’s nascent credit market, through the ‘institutional work’ of local lenders. This work is effective and precarious: while lenders seek out and create institutional complementarities across diverse domains, they also require higher-level regulation to help stabilise land titles’ fungibility as collateral. Our results contribute to knowledge on path-dependency, contingency and uneven trajectories in the property-credit nexus development, and advance understandings of institutional interdependencies and coevolution in the situated economy. By combining deep contextualisation and institutional analysis, we progress an empirical engagement with institutional research in economic geography. |
| Keywords: | institutions; institutional configuration; institutional complementarity; property rights formalisation; credit markets development; Tanzania; the Richard Oram Fund (through Regional and Urban Planning Studies at the LSE); (ES/W005719/1); (ECF-2022-193); OUP deal |
| JEL: | J1 |
| Date: | 2023–09–13 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:120208&r=ban |
| By: | Fernando M. Martin |
| Abstract: | An analysis suggests certain economic factors, such as excess savings, and stubborn price increases in services are risks that might delay or potentially reverse the decline in overall inflation. |
| Keywords: | inflation; excess savings |
| Date: | 2023–10–19 |
| URL: | http://d.repec.org/n?u=RePEc:fip:l00001:97193&r=ban |
| By: | Bansak, Kirk; Paulson, Elisabeth |
| Abstract: | This study explores the public's preferences between algorithmic and human decision-makers (DMs) in high-stakes contexts, how these preferences are impacted by performance metrics, and whether the public's evaluation of performance differs when considering algorithmic versus human DMs. Leveraging a conjoint experimental design, respondents (n = 9, 030) chose between pairs of DM profiles in two scenarios: pre-trial release decisions and bank loan decisions. DM profiles varied on the DM’s type (human v. algorithm) and on three metrics—defendant crime rate/loan default rate, false positive rate (FPR) among white defendants/applicants, and FPR among minority defendants/applicants—as well as an implicit fairness metric defined by the absolute difference between the two FPRs. Controlling for performance, we observe a general tendency to favor human DMs, though this is driven by a subset of respondents who expect human DMs to perform better in the real world. In addition, although a large portion of respondents claimed to prioritize fairness, we find that the impact of fairness on respondents' actual choices is limited. We also find that the relative importance of the four performance metrics remains consistent across DM type, suggesting that the public's preferences related to DM performance do not vary fundamentally between algorithmic and human DMs. Taken together, our analysis suggests that the public as a whole does not hold algorithmic DMs to a stricter fairness or efficiency standard, which has important implications as policymakers and technologists grapple with the integration of AI into pivotal societal functions. |
| Date: | 2023–10–19 |
| URL: | http://d.repec.org/n?u=RePEc:osf:osfxxx:pghmx&r=ban |
| By: | Melih Firat; Otso Hao |
| Abstract: | What are the contributions of demand and supply factors to inflation? To address this question, we follow Shapiro (2022) and construct quarterly demand-driven and supply-driven inflation series for 32 countries utilizing sectoral Personal Consumption Expenditures (PCE) data. We highlight global trends and country-specific differences in inflation decompositions during critical periods such as the great financial crisis of 2008 and the recent inflation surge since 2021. Validating our inflation series, we find that supply-driven inflation is more reactive to oil shocks and supply chain pressures, while demand-driven inflation displays a more pronounced response to monetary policy shocks. Our results also suggest a steeper Phillips curve when inflation is demand-driven, holding significant implications for effective policy design. |
| Keywords: | Inflation decomposition; demand vs supply; Phillips curve; monetary policy; supply chain pressures |
| Date: | 2023–10–17 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:2023/205&r=ban |
| By: | \.Ibrahim Halil Efend\.io\u{g}lu; G\"okhan Akel; Bekir De\u{g}\.irmenc\.i; Dilek Aydo\u{g}du; Kamile Elmaso\u{g}lu; Hande Beg\"um Bum\.in Doyduk; Arzu \c{S}eker; Hatice Bah\c{c}e |
| Abstract: | Cryptocurrencies, enabling secure digital asset transfers without a central authority, are experiencing increasing interest. With the increasing number of global and Turkish investors, it is evident that interest in digital assets will continue to rise sustainably, even in the face of financial fluctuations. However, it remains uncertain whether consumers perceive blockchain technology's ease of use and usefulness when purchasing cryptocurrencies. This study aims to explain blockchain technology's perceived ease of use and usefulness in cryptocurrency purchases by considering factors such as quality customer service, reduced costs, efficiency, and reliability. To achieve this goal, data were obtained from 463 participants interested in cryptocurrencies in different regions of Turkey. The data were analyzed using SPSS Process Macro programs. The analysis results indicate that perceived ease of use and usefulness mediate the effects of customer service and reduced costs, efficiency, and security on purchase intention. |
| Date: | 2023–09 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2310.05970&r=ban |
| By: | Olk, Christopher; Schneider, Colleen; Hickel, Jason |
| Abstract: | Degrowth lacks a theory of how the state can finance ambitious social-ecological policies and public provisioning systems while maintaining macroeconomic stability during a reduction of economic activity. Addressing this question, we present a synthesis of degrowth scholarship and Modern Monetary Theory (MMT) rooted in their shared understanding of money as a public good and their common opposition to artificial scarcity. We present two arguments. First, we draw on MMT to argue that states with sufficient monetary sovereignty face no obstacle to funding the policies necessary for a just and sustainable degrowth transition. Increased public spending neither requires nor implies GDP growth. Second, we draw on degrowth research to bring MMT in line with ecological reality. MMT posits that fiscal spending is limited only by inflation, and thus the productive capacity of the economy. We argue that efforts to deal with this constraint must also pay attention to social and ecological limits. Based on this synthesis we propose a set of monetary and fiscal policies suitable for a stable degrowth transition, including a stronger regulation of private finance, tax reforms, price controls, public provisioning systems and an emancipatory job guarantee. This approach can support broad democratic mobilization for a degrowth transition. |
| Keywords: | degrowth; ecological macroeconomics; fiscal policy; job guarantee; Modern Monetary Theory; universal public services |
| JEL: | J1 |
| Date: | 2023–12–01 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:120343&r=ban |