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Jumpstarting an International Currency (BOE, 35-page read) Central bank policies that reduce the cost of credit for working capital in a foreign currency can jumpstart the process towards international currency status. BoE researchers found that when RMB swap lines were established it led to an increased use of RMB internationally.
The Asymmetric Effects of Monetary Policy on Stock Price Bubbles (OFCE 21-page read) Tight monetary policy has a more powerful effect on stock valuation relative to expansionary policy. This asymmetry becomes even stronger during economic expansion relative to slowdowns.
Duration-Based Stock Valuation (NBER, 28-page read) When a counterfactual fixed income portfolio is constructed to match the duration profile of the aggregate stock market (their dividends), ‘it has performed as well, if not better, than the US stock market in the past five decades, while exhibiting similar levels of volatility’. [Bullish FI Portfolios]