Given that there is exceptionally high uncertainty around the domestic inflation outlook, allowing for greater flexibility in long-term Japanese Government Bond (JGB) yields by the Bank of Japan (BoJ) could be considered going forward. Against this background, this study empirically finds that a...

Stagnant income growth has limited Japan's growth potential and reflation efforts. This paper dissects the wage dynamics of different labor groups and identifies the structural barriers to income growth. Although average income growth has been weak due to the rise of part-time workers and their...

Despite recent improvements in female labor force participation, women remain underrepresented in STEM fields in Japan. Given the close link between STEM workers and innovation, encouraging women to pursue STEM careers could boost growth potential. Using a calibrated endogenous growth model with...

In Japan, corporate savings have risen since 2000 in line with profits. A large share of the additional savings was kept as cash holdings (i.e., cash and short-term investments) rather than used for investment. Building on a rich literature, this paper identifies two additional drivers of...

This paper aims to provide a broad perspective on the WAEMU fiscal framework. Based on backward looking exercises and forward looking scenarios, it shows that (i) repeated fiscal slippages and historically large stock flow adjustments contributed to the surge in the WAEMU public debt, and (ii)...

Interest income from foreign reserves is one of the main revenue sources for most emerging market central banks. For central banks in the Western Balkan region, the low global interest rates during 2008-2021 negatively affected their revenues, and the impact was more pronounced for central banks...

Among western Balkan countries, Kosovo had the largest growth in tax revenue in percent of GDP over 2021-22. While part of this strong performance could be explained by increased activity, surging inflation, and buoyance, a sizable part of it is related to increased formalization. This paper...

Since the start of the war in Ukraine, electricity prices in Europe have increased and become more volatile. This coupled with unreliable domestic electricity supply has led to significant stress for Kosovo's energy sector and budget. This paper presents several scenarios characterized by...

Commercial Real Estate (CRE) debt constitute a large portion of corporate debt. Due to the funding structure this creates substantial risks for the financial system and the real economy, in general, due to broader spillover effects. Stress tests, conducted to assess the resilience of CRE sector,...

With the supply of residential dwellings in the Netherlands having failed to live up to demand over the last decade, apprehension among the population about the availability of affordable housing has risen. Particularly spatial, regulatory, planning, environmental and supply chain constraints...