Darvas, Zsolt, Schoenmaker, Dirk , (2017), “Institutional investors and home bias in Europe’s Capital Markets Union”, Bruegel, March We highlight that existing indicators of equity home bias in the literature suffer from incomplete coverage because they consider only listed equities. We also consider unlisted equites and show that equity home bias is much higher than previous studies perceived. We also analyse home bias in debt securities holdings, and euro area …Read More

Buch, Claudia, Tonzer, Lena, Weigert, Benjamin ,(2017), “Assessing the effects of regulatory bank levies”, Vox Eu, 6 March Banking crises cause large costs to the economy (Reinhart and Rogoff 2011, 2013). Advanced economies are not immune to these costs. Here, the output losses due to financial crises have, on average, been one third of GDP (Laeven and Valencia 2013).1 Across emerging and advanced economies, unemployment increased on average by seven percentage …Read More

Heise, Michael, (2017), “Rewriting the Monetary-Policy Script”, Project Syndicate, 2 March The rule of thumb for monetary policymakers has long been that if inflation is below official target ranges, short-term interest rates should be set at a level that spurs spending and investment. This approach has meant that once interest rates reach or approach zero, central banks have little choice but to activate large asset-purchase programs that are supposed to stimulate …Read More