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Local weather shocks have been shown to affect local economic output, however, little is known about their propagation through production networks. Using a six-sector global dataset over the past fifty years, this paper examines the effect of weather fluctuations and extreme weather events on sectoral economic production and the transmission of weather shocks across sectors, countries and over time. I document that agriculture is the most harmed sector by heat shocks, droughts and cyclones. Using input-output interlinkages, I find that sectors at later stages of the supply chain suffer from substantial and persistent losses over time due to domestic and foreign heat shocks in other sectors. A counterfactual analysis of the average annual output loss accounting for heat shocks across trade partners shows a substantial underestimation of the economic cost of temperature increases since 2000.

Macroeconomics --- Economics: General --- Macroeconomics: Production --- Business Fluctuations --- Cycles --- Transactional Relationships --- Contracts and Reputation --- Networks --- Macroeconomic Analyses of Economic Development --- Climate --- Natural Disasters and Their Management --- Global Warming --- Economic & financial crises & disasters --- Economics of specific sectors --- Currency crises --- Informal sector --- Economics

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This paper presents a novel approach to investigate and model the network of euro area banks’ large exposures within the global banking system. Drawing on a unique dataset, the paper documents the degree of interconnectedness and systemic risk of the euro area banking system based on bilateral linkages. We develop a Contagion Mapping model fully calibrated with bank-level data to study the contagion potential of an exogenous shock via credit and funding risks. We find that tipping points shifting the euro area banking system from a less vulnerable state to a highly vulnerable state are a non-linear function of the combination of network structures and bank-specific characteristics.

Bankruptcy. --- Bankruptcy --- Cessio bonorum --- Insolvency --- Privileged debts --- Business failures --- Commercial law --- Debt --- Law and legislation --- Banks and Banking --- Finance: General --- Network Formation and Analysis: Theory --- Financial Forecasting and Simulation --- Liquidation --- Transactional Relationships --- Contracts and Reputation --- Networks --- Banks --- Depository Institutions --- Micro Finance Institutions --- Mortgages --- Portfolio Choice --- Investment Decisions --- General Financial Markets: Government Policy and Regulation --- Financing Policy --- Financial Risk and Risk Management --- Capital and Ownership Structure --- Value of Firms --- Goodwill --- Banking --- Finance --- Financial services law & regulation --- Liquidity --- Asset liquidity --- Systemic risk --- Commercial banks --- Asset and liability management --- Financial sector policy and analysis --- Financial institutions --- Credit risk --- Financial regulation and supervision --- Banks and banking --- Economics --- Financial risk management --- United States

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In the last two decades, manufacturing industries in Korea have become more concentrated, and interconnectedness across industries and to foreign countries has risen via vertical relationships and trade linkages. This paper investigates the transmission of economic shocks in such a highly concentrated and interconnected structure, focusing on the role of vertical and trade linkages and using the industry-level international input-output data. The results suggest that, first, the role of vertical and trade linkages in propagating growth shocks from both domestic sources and external sources is important. Second, the growth impact of a few key sources of economic shocks is relatively large. These findings highlight that economic shocks in a few key industries and/or major trading partners that are transmitted through vertical and trade linkages can lead to large swings in the overall economy. This paper contributes to the understanding of the potential interactions between the industrial structure and economic growth and stability.

Financial crises --- Crashes, Financial --- Crises, Financial --- Financial crashes --- Financial panics --- Panics (Finance) --- Stock exchange crashes --- Stock market panics --- Crises --- Econometric models. --- Exports and Imports --- Industries: Manufacturing --- Production and Operations Management --- Business Fluctuations --- Cycles --- Empirical Studies of Trade --- International Business Cycles --- Globalization: Macroeconomic Impacts --- Transactional Relationships --- Contracts and Reputation --- Networks --- Trade: General --- Industry Studies: Manufacturing: General --- Macroeconomics: Production --- Human Capital --- Skills --- Occupational Choice --- Labor Productivity --- International economics --- Manufacturing industries --- Macroeconomics --- Manufacturing --- Exports --- Productivity --- Imports --- Labor productivity --- Economic sectors --- International trade --- Production --- Industrial productivity --- China, People's Republic of

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This Note explores the design and governance of platforms to enhance cross-border payments in line with public policy goals. While much innovation in recent years has more narrowly targeted end-user frictions, the vision in this paper is based on the mandate of the IMF, governed by the central banks and finance ministries of 190 member countries. Cross-border payments present the foundation for the global financial system, and its functioning is overseen by the IMF.

Economics: General --- Macroeconomics --- Banks and Banking --- Industries: Financial Services --- Information Management --- Foreign Exchange --- Criminology --- Transactional Relationships --- Contracts and Reputation --- Networks --- Monetary Systems --- Standards --- Regimes --- Government and the Monetary System --- Payment Systems --- Monetary Policy --- IT Management --- Illegal Behavior and the Enforcement of Law --- Economics of specific sectors --- Economic & financial crises & disasters --- Banking --- Distributed ledgers --- Knowledge management --- Currency --- Foreign exchange --- Corporate crime --- white-collar crime --- Economic sectors --- Financial crises --- International reserves --- Central banks --- Central Bank digital currencies --- Technology --- Information and data management --- Anti-money laundering and combating the financing of terrorism (AML/CFT) --- Crime --- Informal sector --- Economics --- Currency crises --- Foreign exchange reserves --- Financial services industry --- Technological innovations --- Information resources management --- Money laundering

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The COVID-19 pandemic has posed a serious threat to the survival of Japanese firms, highlighting the importance of understanding how and why firms exit. In this paper, we use a rich firm-level dataset of Japanese firms to document how firm exit patterns have evolved between 2007 and 2017. Firm exit patterns have been heavily influenced by Japan’s demographic trends, as a majority of exits in recent years were voluntary exits of firms (business closures) owned by CEOs aged 65 years or older without business successors. In contrast to this increase in voluntary exits, other “traditional” firm exits (such as bankruptcies), have declined. These findings underscore the importance of addressing business transition issues in a rapidly aging society.

Japan --- Corporate Finance --- Exports and Imports --- Industries: Manufacturing --- Demography --- Firm Behavior: Empirical Analysis --- Bankruptcy --- Liquidation --- Market Structure, Firm Strategy, and Market Performance: General --- Transactional Relationships --- Contracts and Reputation --- Networks --- Regional Economic Activity: Growth, Development, and Changes --- Economics of the Elderly --- Economics of the Handicapped --- Non-labor Market Discrimination --- Corporate Finance and Governance: General --- Industry Studies: Manufacturing: General --- International Lending and Debt Problems --- Demographic Trends, Macroeconomic Effects, and Forecasts --- Population & demography --- Ownership & organization of enterprises --- Manufacturing industries --- International economics --- Aging --- Small and medium enterprises --- Manufacturing --- Interest payments --- Demographic change --- Population and demographics --- Economic sectors --- External debt --- Population aging --- Small business --- Debt service --- Demographic transition