Papers & Opinions

Central banking | Political institutions | Regulation | Special interest politics

Political Economy in Finance

Opinion

Posted on 6 July 2021

By Enrico Perotti

This post reports on recent work presented at the first edition of the CEPR Conference Series on the Political Economy of Finance, which focused on the politics of regulation and...
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Central banking | Corporate finance | Political institutions

(Why) Do Central Banks Care About Their Profits?

Paper

Posted on 1 July 2021

By Martin Schmalz

We document that central banks are significantly more likely to report slightly positive profits than slightly negative profits, especially amid greater political pressure, the public’s receptiveness to more extreme political...
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Corporate finance | Empirics | Political institutions

Finance and Ideology: The Firm-Level Channels

Paper

Posted on 22 June 2021

By Haikun Zhu

We investigate how politicians’ ideologies affect economic outcomes and financial development through firm-level channels. We explore a unique setting of ideological change in China from Mao’s ideology to Deng’s around...
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Central banking | Political institutions | Theory

The Euro as a Diverse Monetary Union

Paper

Posted on 21 May 2021

By Oscar Soons

We analyze the political economy causes and consequences of a monetary unification among countries with different institutional quality. Before a common currency countries with stronger institutions have more efficient public...
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