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Bank of England Research @BoE_Research
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[THREAD] Ambrogio Cesa-Bianchi (BoE & @CFMUK), @APFerrero (Oxford) and @arebucci1 (@JHUCarey ): “International Credit Supply Shocks”, Journal of International Economics (forthcoming). Looks at global banks’ leverage as source of domestic boom-bust cycles. sciencedirect.com/science/articl…
2/ Evidence consistent with global financial cycle hypothesis. Global banks’ leverage shocks account for 15% of variation in cross-border bank credit, and explain 10% of variation of domestic consumption: in line with what typically explained by domestic monetary policy shocks.
3/ Impact of external shock varies across countries: bigger with higher maximum LTV ratios, higher shares of foreign currency debt, lower capital controls, and fixed exchange rates. sciencedirect.com/science/articl…
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[THREAD] SWP 761 by Zoltan Jakab + Michael Kumhof argues the standard economic model of banks as intermediaries of loanable funds is wrong. It misrepresents what banks do + doesn’t fit stylised facts about balance sheets + propagation of financial shocks.

bankofengland.co.uk/working-paper/…
2/ Most economic models assume banks are “intermediaries of loanable funds”(ILF): i.e. savers turn up at branches with funds to deposit, which a bank then lends on to borrowers. In this view banks don’t create credit, they just channel existing funds from savers to borrowers.
3/ In practice, banks can make loans by financing through money creation (FMC): i.e. they can loan money without having any pre-existing savings. The bank just creates a new liability (the new funds in borrowers account) + corresponding asset (the new loan on its lending book).
Read 7 tweets
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[THREAD] SWP 751 by Michalis Vasios (BoE), @GinoCenedese (@FulcrumAsset), Angelo Ranaldo (@HSGStGallen) looks at how recent reforms to OTC derivatives have affected how interest rate swaps are priced, uses transaction level trade repository data.
bankofengland.co.uk/-/media/boe/fi…
2/ Paper looks at USD denominated fixed-to-floating IRS contracts between 2014-16. Trades more likely to be centrally cleared when they have larger notional value, longer maturity and involve dealers, banks or hedge funds.
3/ Authors find evidence of heterogeneity in swap pricing. Clients pay a higher price to buy interest-rate protection from a dealer if the contract is not CCP cleared. Premium decreases by posting initial margin and with buyer's creditworthiness. Premium is absent for dealers.
Read 4 tweets
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[THREAD] SWP 724 by Ben Dyson, Jack Meaning, James Barker and Emily Clayton explores how a central bank digital currency (CBDC) might affect the monetary transmission mechanism (MTM).
bankofengland.co.uk/working-paper/…
2/ If a CBDC is just a payment instrument that doesn’t pay interest, then it only really competes with cash. If it also pays interest, then it starts to compete with bank deposits. Then it starts to have implications for price and volume of bank funding. And therefore the MTM.
3/ Assumes central bank sets interest rate on CBDC. This becomes
floor on all other rates in the economy b/c CBDC is safest store of value +
also provides transactional services, no-one else would want to lend to non-CB agents at lower than CBDC rate.
Read 6 tweets

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The "Citizen Amendment Bill 2016" gives lifeline to religious minorities who have suffered prosecution in neighbouring Islamic countries Pak, BD & AFG.

Kudos to @narendramodi to stand by Hindus of entire Indian subcontinent

#Thread to explain the amendment & its implications
1/n (Basics)
Q1: What is the definition of citizenship?

A: Citizenship is the legal right to belong to a particular country. It offers right to vote & right to contest election.

Citizenship policy of a country plays an extremely consequential role in defining its demography.
2/n (History)
Q2: What is the Citizenship Act, 1955?

A: Initially, when Indian Constitution came into effect in 1950, it did not have any provision on how to grant or revoke Indian citizenship. Hence, the need for having a law governing citizenship matters was felt pretty soon
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Cost evaluations is an important part strategic management and often times consultants find themselves managing pool of high revenue but low profit firms.

This is a #thread on cutting costs strategically & staying competitive.

#Consulting #ManagementConsulting
The business environment today has become extremely competitive. Companies are not only facing competition from their local competitors but also from global ones. Different economic and geopolitical factors make global supply chains necessary.
The problem with having global supply chains is that operations become broad and complex. It is much easier to manage operations located in the same geography rather than those located in multiple countries.
Read 27 tweets
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#THREAD

The Cosmic Movement's penetration of Indian Freedom Struggle, Politics, Education & Religion.

This thread focuses on advanced threat perception from this group. Although this is a vast network covering many areas we concentrate here on key players driving it forward.
This guy is Max Theon original name Louis-Maximilian Bimstein. He founded the Cosmic Movement. As we will see each and every member of this network prefers to hide their original name, identity and history.
Many prominent people were involved with this Cosmic Movement as we will see. One of them was Tomáš Masaryk (who became the first President of Czechoslovakia) also the Princess of Rohan in Vienna and many others. However this group was actually a spin-off of the OTO.
Read 44 tweets
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This thread is to congratulate Prof. Steve Keen for having his co-authored paper accepted by the Journal of Ecological Economics, and to thank him for the attached preprint. The correct role of energy in production has been absent from conventional economic theory for centuries.
Energy is a hard concept. This might explain its absence of economic models. And confirms Keen's courage to dare tackle the problem.

His new contribution gains even more relevance since we have entered the Anthropocene full steam ahead, further into overshoot.
As @GeorgeMonbiot put it "The oligarchic control of wealth, politics, media and public discourse explains the comprehensive institutional failure now pushing us towards disaster." There are plenty of reasons to add economics to this list.
Read 13 tweets
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Starting "Voices without Frontiers" #VoicesIWS
A program by @IWS_Network to promote awareness about the challenges & lessons learned by #Immigrant and #International #WomenInScience

I was born & raised in Chicoral, Colombia. A tiny town in the middle of the Andes Cordillera.
I attended Nuestra Señora del Rosario school, located in Espinal, 15Km away from Chicoral. Due to the high heat by noon, all schools start really early back home. This meant, I had to wake up at 5am to attend school every morning since I was 4 years old. #VoicesIWS
I did well in math and science in elementary and high school, so I chose to study clinical microbiology. Although coming from a low-middle income family, I was able to attend university, thanks to my parents’ effort to prioritize education over other commodities. #VoicesIWS
Read 40 tweets
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1/ The US Dollar may not be redeemable in gold, but the US Dollar is backed by various assets, including gold, as required by law. (see federalreserve.gov/faqs/currency_…) #economics
2/ The answer to this poll was "the US Dollar is backed by Assets". Only 6% got it right (that is 87 out of 1443 people). And many for the wrong reasons (yes, guns are assets, yet not the assets backing the US Dollar).

3/ Second best answer would have been "Debt", or "Debt securities", which were not an alternative. Every debt deed is a liability for someone and an asset for someone else.
Read 16 tweets

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