by Mike Tan

An Overview of the Eurozone Crisis

In 1999, the Euro was launched and monetary policy autonomy was surrendered to the European Central Bank, which now controls interest rates of all Eurozone countries. However, countries retained control over their fiscal policies and this lack of coordination lay at the heart of the Euro crisis…

By Jason Jia, Callum Renton, Sandra Ng, Sheryl Dong, Brooklyn Han, Birce Akay, Roberto Patiño, Daniel Carey, Pedro Almas, Anna Clarey, Annie Wang and Dillon Oppon-Ferguson

Covid-19 has fundamentally altered our lives and is consequently driving much of recent macroeconomic research. In previous articles, the Monetary Policy Research Division delved…

By Sheryl Dong, Birce Akay, Daniel Carey and Dillon Oppon-Ferguson

Desired Outcomes of QE

Channels through which QE operates:

Quantitative Easing (QE) was first introduced to the UK in 2009 as a way to combat the depressing effects of the financial crisis in the UK economy, in more ways than just conventional monetary policy…

By Sandra Ng, Brooklyn Han, Anna Clarey and Pedro Almas

What is Modern Monetary Theory?

Modern Monetary Theory (MMT) is a fringe macroeconomic theory which argues that government spending need not be paid for by taxes. It further posits that governments can run budget deficits as large as they wish…

By Callum Renton, Roberto Patiño, Sally Yang and Annie Wang

Introduction

We have chosen to investigate the contemporary phenomenon of negative interest rate policies (NIRP). Intuitively, the notion that a creditor is willing to pay a borrower for the pleasure of lending to them seems nonsensical. In practice, this has been…

by Kirubaharan Muttusamy, Ong Jing Yee, Tan Yong Qi and Muhammad Husin bin Abd Wahid

In the early to mid-2000s, incentivized by the high-profit margins, many banks in the United States engaged in subprime lending to create more mortgages for the mortgage-backed securities market. The supernormal profits earned from these…

By Mike Tan, Park Sung Jae and Hazrul Akmal Hazarudin

What is a stress test?

Stress testing is a risk management tool that focuses on several key areas including credit, market, operational and liquidity risk. It is used to assess the strength of a bank’s balance sheet through its ability to survive during periods of…

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