News

New Working Paper | The Impact of Colombia’s Gross Leverage Position in Foreign Exchange Derivatives on Housing Market Stability

Housing prices are among the most crucial determinants of a country’s financial and macroeconomic stability. As a key macroeconomic indicator, they significantly influence both consumption and investment, shaping economic and financial cycles. Given that housing represents a substantial share of household wealth, price fluctuations have far-reaching effects on consumption, savings, and labor market decisions.

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Working paper in academic journal | High Frequency Monitoring of Credit Creation: A New Tool for Central Banks in Emerging Market Economies

This study utilizes weekly datasets on loan growth in Colombia to develop a daily indicator of credit expansion using a two-step machine learning approach. Initially, employing Random Forests (RF), missing data in the raw credit indicator is filled using high frequency indicators like spreads, interest rates, and stock market returns.

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New Working Paper | Climate Growth at Risk in the Global South

The objective of this working paper was to examine the effect of climate uncertainty shocks on the distribution of economic growth rates across Latin American and Caribbean countries from 1970 to 2022. It provides novel indicators for volatility, asymmetry, and kurtosis shocks based on daily temperature data at the country level.

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Press Release: 8th Joint RFAs Research Seminar

The 8th Joint Regional Financing Arrangements (RFAs) Research Seminar starts today May 16 in Luxembourg. The two-day hybrid seminar will examine the economic and financial risks associated with global fragmentation. This event is organised jointly by the ASEAN+3 Macroeconomic Research Office (AMRO), the European Stability Mechanism (ESM), and Latin American Reserve Fund (FLAR).

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FLARblog | A New Tool for High-Frequency Monitoring of Credit Creation in Emerging Market Economies

Early warning systems represent a crucial asset for regulatory bodies and financial system overseers. While on-site monitoring stands out as a premier means through which authorities can glean both quantitative and qualitative insights into the fiscal well-being of the entities under scrutiny, the execution of such monitoring at a high frequency can incur substantial costs.

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