Investigating the relationship between the financial and real economy

BIS Papers No 22
April 2005

Foreword

The papers in this volume were presented and discussed at the Autumn Central Bank Economists' Meeting held at the BIS in Basel on 9-10 October 2003. The purpose of this meeting was to discuss challenges that central banks have faced in the context of monitoring the performance of the financial sector and the interaction between the health of financial institutions and macroeconomic stability. These challenges can be broadly grouped into three distinct but interrelated themes.

The first deals with the influence that financial conditions have on aggregate expenditure and overall economic developments. The second theme reverses the direction and looks at the impact of the macroeconomic environment on the financial health of different economic sectors. Finally, the third theme deals with the evolving nature of the measurement of financial risk both at the micro level of individual economic units and at the macro level of whole sectors or the overall economy.

Background paper

Title Languages
  Investigating the relationship between the financial and real economy EN

Papers presented

Title Languages
  Disinflation and the dynamics of mortgage debt EN
  Financial behaviour of Dutch households: analysis of the DNB Household Survey EN
  The impact of financial variables on firms' real decisions: evidence from Spanish firm-level data EN
  Financial constraints and real activity: a non-structural approach using UK survey data EN
  A note on the recent behaviour of Japanese banks EN
  Non-performing loans and the real economy: Japan's experience EN
  The bank lending channel in Chile EN
  Welfare analysis of non-fundamental asset price and investment shocks: implications for monetary policy EN
  Productivity, monetary policy and financial indicators EN
  The term structure as a predictor of real activity and inflation in the euro area: a reassessment EN
  Extracting growth and inflation expectations from financial market data EN
  Forecasting aggregate investment in the euro area: do indicators of financial conditions help? EN
  Assessing the predictive power of measures of financial conditions for macroeconomic variables EN
  Linking real activity and financial markets: the first steps towards a small estimated model for Canada EN
  Interactions between business cycles, financial cycles and monetary policy: stylised facts EN
  Business cycle, credit risk and economic capital determination by commercial banks EN
  A simplified credit risk model for supervisory purposes in emerging markets EN
  Lending decisions, procyclicality and the New Basel Capital Accord EN
  Macro stress tests of UK banks EN
  Monetary and financial stability in Norway: what can we learn from macroeconomic stress tests? EN
  Measuring and forecasting stress in the banking sector: evidence from Switzerland EN
  Sectoral fragility: factors and dynamics EN
  Macroeconomic conditions and banking performance in Hong Kong SAR: a panel data study EN