A Few White Papers
you are currently viewing::IMF Note-Fund Investor Types and Bond Market VolatilityMarch 12, 2025-Summary This paper explores the similarities and differences of tokens with traditional legal instruments in commercial law and how tokens could offer superior solutions, provided that proper legal foundations are established for their operation, including aspects of the law of securities and consumer protection law. However, there is a stark divergence between the behavior of institutional and retail ETF investors and their impact on the underlying market. When a larger share of a bond is owned by institutional investors through ETFs, its volatility tends to be higher. Conversely, retail investors tend to offset this impact of institutional investors. This disparity is not evident for OEMFs. Source: imf.org |
IMF Working Papers-Inflation Targeting and the Legacy of High Inflation
April 11, 2025-Summary
As inflation targeting (IT) turns 35, it has become a key institutional monetary framework by central banks. Yet, this paper shows that stark differences exist among inflation targeting countries in the conduct of monetary policy. Behind such heterogeneity, the legacy of a high inflation history appears as a preponderant factor.
Navigating Trade-Offs between Price and Financial Stability in Times of High Inflation
April 11, 2025-Summary
Trade-offs between price and financial stability can occur when inflation is above target and financial stress is rising. Use of central bank liquidity tools and other financial stability policies may, under some circumstances, allow central banks to maintain their inflation fighting stance, while addressing financial stress. However, challenges in deploying these tools and specific country characteristics may hinder central banks’ ability to achieve both price and financial stability.
IMF Working Papers-The Global Impact of AI: Mind the Gap
April 11, 2025-Summary
This paper examines the uneven global impact of AI, highlighting how its effects will be a function of (i) countries' sectoral exposure to AI, (ii) their preparedness to integrate these technologies into their economies, and (iii) their access to essential data and technologies.
The Research Behavior of Individual Investors- Toomas Laarits & Jeffrey Wurgler
March 31, 2025--Browser data from an approximately representative sample of individual investors offers a detailed account of their search for information, including how much time they spend on stock research, which stocks they research, what categories of information they seek, and when they gather information relative to events and trades. The median individual investor spends approximately six minutes on research per trade on traded tickers, mostly just before the trade; the mean spends around half an hour.
Could Digital Currencies Lead to the Disappearance of Cash from the Market?
March 21, 2025-Summary
Private and public agents' plans and actions to introduce digital currencies and other innovative payment instruments could produce some unintended consequences, including the potential disappearance of physical cash. This study employs a two-sided market model to examine how payment systems might respond to new currencies.
