Publications

Tax Expenditures and Complexity in a VAT System: The Case of Brazil

| 7 January 2020
Blog, Fiscal | Tags: Tax Expenditures, VAT
Despite its known regressivity, the value-added tax (VAT) has been considered a robust tool for development, especially if integrated into a well-implemented tax-and-benefit system. VAT is often considered a neutral tax that minimizes distortions and is particularly relevant to low- and middle-income countries due to ... continue reading

Climate Risk and Financial Systems of Latin America: Regulatory, Supervisory and Industry Practices in the Region and Beyond

, , , and | 18 December 2019
Discussion Notes, Monetary | Tags: Central Banks, Climate risk, Financial Regulation, Green Finance, Latin America
In Latin America and the Caribbean (LAC), regional supervisors and regulators have not yet explicitly included nor addressed climate-related risks in binding regulations and/or supervisory measures for the financial sector. This implies significant work ahead for the LAC financial sector to develop effective and complete ... continue reading

Housing Taxation in Europe

, , , and | 18 December 2019
Blog, Fiscal | Tags: Housing, Tax Expenditures
Tax incentives favouring homeownership are widely used in developed economies. Homeownership is often thought to bring a number of positive contributions, from the promotion of households´ saving to enhanced community engagement. However, housing tax incentives are also considered as a major source of distortions for ... continue reading

Climate Risks in Financial Assets

, and | 4 November 2019
Discussion Notes, Monetary | Tags: Asset prices, Climate risk, Climate stress tests
This note reviews the empirical evidence available in the academic literature about the impact of climate-related risks on financial assets. It addresses three main questions: does climate change already affect financial asset returns? What is the potential impact of future climate-related costs on financial asset ... continue reading

Unconventional Monetary Policy and Inequality – Is Japan Unique?

and | 20 September 2019
Monetary, Working Papers | Tags: Inequality, Japan, Quantitative Easing
For over a decade, but especially since the start of Abenomics in 2013, the Bank of Japan (BoJ) has been increasing the monetary base rapidly by implementing an unconventional monetary policy (UMP). In a 2014 study, we found that Japan’s UMP had increased income inequality. ... continue reading