Systemic Stress News Today

Two economists at Amazon say they have a model that allows them to identify a recession in the US and Europe.

Even though the European Central Bank appeared to choose fighting inflation over defusing banking instability, its struggle to tighten interest rates any further from here will likely show that the two issues are joined at the hip.After a dramatic...

The European Central Bank (ECB) is the central bank of the 19 European Union countries which have adopted the euro. Our main task is to maintain price stability in the euro area and so preserve the purchasing power of the single currency.

Following the Russian invasion of Ukraine on 24 February 2022, financial stress indicators suddenly increased. Using this high-frequency daily information conveyed by financial markets, this column presents a newly developed mixed-frequency quantile regression model in order to quantify macro risks in the euro area for the first quarter of 2022. The authors show that macro

-- this post authored by Nina Boyarchenko, Richard Crump, Anna Kovner, and Or Shachar With more than $10.4 trillion outstanding as of Q3:2020, the U.S. corporate bond market is a significant source of funding for most large U.S. corporations. While prior literature offers a variety of measures to capture different aspects of corporate bond market functioning, there is little consensus on how to use those measures to identify periods of distress in the market as a whole. In this post, we describ...

The importance of trust for the ECB’s monetary policy Speech by Isabel Schnabel, Member of the Executive Board of the ECB, as part of the seminar series “Havarie Europa. Zur Pathogenese europäischer Gegenwarten” at the Hamburg Institute for Social Research (Hamburger Institut für Sozialforschung) Frankfurt am Main, 16 December 2020 Ladies and gentlemen, Thank you for inviting me to join this seminar series. I am pleased to speak to you today about Europe and about the euro. The seminar ...