Research Newsletter Online 2/2010

2 • 2010

Net worth and credit allocation

There is now a relatively large theoretical body of literature showing that credit frictions and, more generally, financial market imperfections can amplify business cycle fluctuations. The most recent financial crisis has provided further impetus and stronger incentive for researchers to construct frameworks that incorporate such frictions and are suitable for quantitative business cycle analysis.
Although progress has been made, it is still true that the task of developing the required quantitative models is particularly challenging, since many of the relevant finance-related models display heterogeneity and frictions such as asymmetric information and costly contract enforcement.
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Strengthening the bank's research function: research fellows and scientific advisors

Increasingly many central banks are thinking about the role of research in their overall strategy, revising their research policy to sharpen the focus of central bank research and actively seeking ways to strengthen their research function. To the extent that being able to produce central bank research that also satisfies high academic quality requirements and, furthermore, to publish that research in refereed international journals is an important element in central banks' research policy, building and maintaining close and active relationships with the academia seems increasingly critical.
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Conferences and seminars

Recent Bank of Finland research publications

Forthcoming discussion papers

Editor
Head of Research
Jouko Vilmunen
Monetary Policy and Research
Research Unit
research@bof.fi

Bank of Finland
PO Box 160
FI-00101 Helsinki
Phone +385 10 8311

Head of Research
BOFIT
Iikka Korhonen

ISSN 1796-9131 (web publication)

Research Newsletter 2/2010 (PDF)