2018 Winners of the Nikkei Prize

November 5th, 2018

Prof. Kiyohiko G. Nishimura (CFDS Academic Board Member) was awarded the 2018 Nikkei price for his book "Economics of Pessimism and Optimism" from Springer. The Nikkei prize is considered the most prestigious award for books in economics by Japanese authors. (https://www.jcer.or.jp/about-jcer/bunka available in Japanese only)

Prof. Nishimura is the first author that was awarded with this prize for books written in English twice, in 1993 he won the award for his book "Imperfect Competition, Differential Information and Microfoundations of Macroeconomics" from Oxford University Press.

The CFDS congratulates to this unprecetended achievement and wants to seize the opportunity to thank Prof. Nishimura once more for his continued support of our center.

Participants of the 1st Academic Board Meeting

November 2nd, 2018

This Friday, we had the opportunity to host 5 most distinguished colleagues for the inauguration meeting of the CFDS Academic Board - Prof. Gao Peiyong (Vice-President of the China Academy of Social Science), Prof. Hu Haifeng (Head of the Department of Finance at Beijing Normal University), Prof. Kiyohiko Nishimura (Professor of Economics at the National Graduate Institute for Policy Studies in Japan), Prof. Young Sik Kim (Director of the Seoul National University Institute for Research in Finance and Economics) and Prof. Paul McNelis (Robert Bendheim Professor of Economic & Financial Policy at Fordham University). The Academic Board meets annually and provides advice to the executive board members on future research focuses and possibilities to further improve the policy impact of the CFDS.


September 30th, 2018


International relations are at a crossroad. A single misstep could yield desaster and shape the future of global cooperation for decades to come. Maybe, the world is in dire need of a superhero. But then, maybe this wish for a hero was at the core of our problems all along. Read our op-ed on superheroes and the global trade conflict to learn more.


Policy Forum 4 (September 2018)

Picture from the 4th HenU/INFER Workshop on Applied Macroeconomics

September 27th 2018

Our 5th HenU/INFER Workshop will be held on March 29th and 30th, 2019 (post-conference trip on March 31st). We are excited to announce our keynote speakers for the 2019 workshop - Prof. Lawrence Christiano from Northwestern University, Prof. Randall Wright from the University of Wisconsin Madison and Prof. Joshua Aizenman from the University of Southern California. Selected, excellent papers will be considered for a special issue in Journal of International Money and Finance on "Monetary and Fiscal Fragility in the 2020s". Visit our Conference Website for more information or directly submit your paper now via conferencemaker.

August 22nd, 2018

Discussion Paper 2018/6 is now available: El-Shagi, M. / Yamarik, S.: IMF Conditionality and Capital Controls: Capital Account Liberalization to Capital Inflow Management?


Since the end of the Bretton Woods system, promoting capital account liberalization has been one of the tenants of the IMF. Capital account liberalization was deemed one of the 10 pillars of what was often dubbed the Washington Consensus. Yet things changed drastically with the Global Financial Crisis of 2008. From 2009 to 2012, comments from top IMF officials and staff reports displayed quite clearly that the IMF had revised its position where capital controls could be part of the toolkit. In this paper, we assess the role of the IMF in capital account liberalization from 1995 to 2015. We use a midpoint-inflated ordered probit model to estimate the effects of being under IMF conditionality on capital controls, allowing for different effects for pre- and post-Financial Crisis. We find that the IMF did indeed drive liberalization of capital inflows in the precrisis era, but stopped doing so in the post-crisis period.


July 4th, 2018

Discussion Paper 2018/5 is now available: Rongrong Sun: Monetary Policy Announcements and Market Interest Rates’ Response: Evidence from China


This paper uses the event study to estimate the impact of various monetary policy announcements on market interest rates in China over the 2002-2017 period. I find that financial markets understand the quantitative signals better: the market response to an announced adjustment of the regulated retail interest rate and the required reserve ratio is positive and significant at all maturities of bond rates, but smaller at the long end of the yield curve. However, the market barely responds to announced changes in the qualitative policy stance index, which contains limited vague information and is easily anticipated. Two newly introduced central bank lending rates do not appear to be sufficient to replace the retail interest rate and the reserve ratio in guiding market rates in the post-deregulation era. My results suggest that the PBC adopts a publicly announced short-term interest-rate operating target regime, similar to the Fed’s federal funds rate target.


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