This issue of the IMF Research Bulletin opens with a letter from the new editor, Rabah Arezki. The Research Summaries are a "Primer on 'Global Liquidity'" (Eugenio Cerutti, Stijn Claessens, and Lev Ratnovski); and "Trade Integration adn Business Cycle Synchronization" (Kevin Cheng, Romain Duval, and Dulani Senevirante). The Q&A column looks at "Seven Questions on the Global Housing Markets" (Hites Ahir, Heedon Kang, and Prakash Loungani). September 2014 issue of the Bulletin also includes updates on IMF Working Papers, Staff Discussion Notes, and Recommended Readings from the IMF Bookstore, as well as special announcements on new staff publications and the Fifteenth Annual Jacques Polak Research Conference. Also included is information on the latest issue of �IMF Economic Review� with a link to an article by Paul Krugman.

Abstract

This issue of the IMF Research Bulletin opens with a letter from the new editor, Rabah Arezki. The Research Summaries are a "Primer on 'Global Liquidity'" (Eugenio Cerutti, Stijn Claessens, and Lev Ratnovski); and "Trade Integration adn Business Cycle Synchronization" (Kevin Cheng, Romain Duval, and Dulani Senevirante). The Q&A column looks at "Seven Questions on the Global Housing Markets" (Hites Ahir, Heedon Kang, and Prakash Loungani). September 2014 issue of the Bulletin also includes updates on IMF Working Papers, Staff Discussion Notes, and Recommended Readings from the IMF Bookstore, as well as special announcements on new staff publications and the Fifteenth Annual Jacques Polak Research Conference. Also included is information on the latest issue of �IMF Economic Review� with a link to an article by Paul Krugman.

Working Paper 14/77

Hysteresis in Unemployment and Jobless Recoveries

Dmitry Plotnikov

Working Paper 14/78

SMEs’ Access to Finance in the Euro Area: What Helps or Hampers?

Bahar Öztürk; Mico Mrkaic

Working Paper 14/79

European Productivity, Innovation, and Competitiveness: The Case of Italy

Andrew Tiffin

Working Paper 14/80

Export Spillovers from Global Shocks for the Middle East and Central Asia

Alberto Behar; Jaime Espinosa-Bowen

Working Paper 14/81

Safe Havens, Feedback Loops, and Shock Propagation in Global Asset Prices

Franziska Ohnsorge; Marcin Wolski; Yuanyan Sophia Zhang

Working Paper 14/82

Determinants of International Tourism

Alexander Culiuc

Working Paper 14/83

With Great Power Comes Great Responsibility: Macroprudential Tools at Work in Canada

Ivo Krznar; James Morsink

Working Paper 14/84

Time-Varying Neutral Interest Rate—The Case of Brazil

Roberto Perrelli; Shaun K. Roache

Working Paper 14/85

Fiscal Adjustment and Income Inequality: Sub-National Evidence from Brazil

João Pedro Azevedo; Antonio David; Fabiano Rodrigues Bastos; Emilio Pineda

Working Paper 14/86

Are Banks Really Lazy? Evidence from Middle East and North Africa

Simon Gray; Philippe D Karam; Rima Turk Ariss

Working Paper 14/87

Central Bank Financial Strength in Central America and the Dominican Republic

Andrew Swiston; Florencia Frantischek; Przemek Gajdeczka; Alexander Herman

Working Paper 14/88

Financial Constraints, Intangible Assets, and Firm Dynamics: Theory and Evidence

Sophia Chen

Working Paper 14/89

Inflation Targeting and Fiscal Rules: Do Interactions and Sequencing Matter?

Jean-Louis Combes; Xavier Debrun; Alexandru Minea; Rene Tapsoba

Working Paper 14/90

Optimal Prudential Regulation of Banks and the Political Economy of Supervision

Thierry Tressel; Thierry Verdier

Working Paper 14/91

Inflation Reports and Models: How Well Do Central Banks Really Write?

Ales Bulir; Jaromír Hurník; Katerina Smidkova

Working Paper 14/92

The Case for a Long-Run Inflation Target of Four Percent

Laurence M. Ball

Working Paper 14/93

A Simple Method to Compute Fiscal Multipliers

Nicoletta Batini; Luc Eyraud; Anke Weber

Working Paper 14/94

Does Openness Matter for Financial Development in Africa?

Antonio David; Montfort Mlachila; Ashwin Moheeput

Working Paper 14/95

Managing Credit Bubbles

Alberto Martin; Jaume Ventura

Working Paper 14/96

Inflation and Public Debt Reversals in the G7 Countries

Bernardin Akitoby; Takuji Komatsuzaki; Ariel J. Binder

Working Paper 14/97

After the Fall: Lessons for Policy Cooperation from the Global Crisis

Tamim Bayoumi

Working Paper 14/98

Small and Medium Size Enterprises, Credit Supply Shocks, and Economic Recovery in Europe

Nir Klein

Working Paper 14/99

Ms. Muffet, the Spider(gram) and the Web of Macrofinancial Linkages

Ricardo Cervantes; Phakawa Jeasakul; Joseph Maloney; Li Lian Ong

Working Paper 14/100

Economic Impact of Selected Conflicts in the Middle East: What Can We Learn from the Past?

Randa Sab

Working Paper 14/101

National Income and Its Distribution

Markus Bruckner; Era Dabla-Norris; Mark Gradstein

Working Paper 14/102

An Application of the “Fan-Chart Approach” to Debt Sustainability in Post-HIPC Low-Income Countries

Maximilien Kaffo Melou; Mariusz A. Sumlinski; Chris Geiregat

Working Paper 14/103

How to Capture Macro-Financial Spillover Effects in Stress Tests?

Heiko Hesse; Ferhan Salman; Christian Schmieder

Working Paper 14/104

The Tax-adjusted Q Model with Intangible Assets: Theory and Evidence from Temporary Investment Tax Incentives

Sophia Chen; Estelle Dauchy

Working Paper 14/105

Determinants of Interest Rate Spreads in Solomon Islands

Nooman Rebei

Working Paper 14/106

The Net Stable Funding Ratio: Impact and Issues for Consideration

Jeanne Gobat; Mamoru Yanase; Joseph Maloney

Working Paper 14/107

Structural Balance Targeting and Output Gap Uncertainty

Eugen Tereanu; Anita Tuladhar; Alejandro Simone

Working Paper 14/108

Monetary Policy in Hybrid Regimes: The Case of Kazakhstan

Natan P. Epstein; Rafael Portillo

Working Paper 14/109

Impact of Fed Tapering Announcements on Emerging Markets

Prachi Mishra; Kenji Moriyama; Papa M’B. P. N’Diaye; Lam Nguyen

Working Paper 14/110

Tax Buoyancy in OECD Countries

Vincent Belinga; Dora Benedek; Ruud A. de Mooij; John Norregaard

Working Paper 14/111

Financial Plumbing and Monetary Policy

Manmohan Singh

Working Paper 14/112

On the Use of Monetary and Macroprudential Policies for Small Open Economies

F. Gulcin Ozkan; D. Filiz Unsal

Working Paper 14/113

The EU Services Directive: Gains from Further Liberalization

Emilio Fernández Corugedo; Esther Pérez Ruiz

Working Paper 14/114

Labor Tax Cuts and Employment: A General Equilibrium Approach for France

Raphael A. Espinoza; Esther Pérez Ruiz

Working Paper 14/115

Labor Market Issues in the Caribbean: Scope to Mobilize Employment Growth

Magda E. Kandil; Genevieve Lindow; Mario Mansilla; Joel Chiedu Okwuokei; Jochen M. Schmittmann; Qiaoe Chen; Xin Li; Marika Santoro; Solomon Stavis

Working Paper 14/116

Bank Risk Within and Across Equilibria

Itai Agur

Working Paper 14/117

Growth: Now and Forever?

Giang Ho; Paolo Mauro

Working Paper 14/118

Deposit Insurance Database

Asli Demirgüç-Kunt; Edward Kane; Luc Laeven

Working Paper 14/119

Why Complementarity Matters for Stability—Hong Kong SAR and Singapore as Asian Financial Centers

Vanessa Le Lesle; Franziska Ohnsorge; Minsuk Kim; Srikant Seshadri

Working Paper 14/120

Banks, Government Bonds, and Default: What do the Data Say?

Nicola Gennaioli; Alberto Martin; Stefano Rossi

Working paper 14/121

Modeling Appropriate Fiscal Targets and Optimal Consolidation Paths for Resource-Rich Countries: The Case of Suriname

Daniel Kanda; Mario Mansilla

Working Paper 14/122

Fiscal Rules and the Procyclicality of Fiscal Policy in the Developing World

Elva Bova; Nathalie Carcenac; Martine Guerguil

Working Paper 14/123

Oversight Issues in Mobile Payments

Tanai Khiaonarong

Working Paper 14/124

What Is Behind Latin America’s Declining Income Inequality?

Evridiki Tsounta; Anayochukwu Osueke

Working Paper 14/125

Debt, Growth, and Natural Disasters: A Caribbean Trilogy

Sebastian Acevedo Mejia

Working Paper 14/126

Future of Asia’s Finance: How Can it Meet Challenges of Demographic Change and Infrastructure Needs?

Ding Ding; Raphael W. Lam; Shanaka J. Peiris

Working Paper 14/127

First-Time International Bond Issuance—New Opportunities and Emerging Risks

Anastasia Guscina; Guilherme Pedras; Gabriel Presciuttini

Working Paper 14/128

Output Gap in Presence of Financial Frictions and Monetary Policy Trade-offs

Francesco Furlanetto; Paolo Gelain; Marzie Taheri Sanjani

Working Paper 14/129

Liquidity Trap and Excessive Leverage

Anton Korinek; Alp Simsek

Working Paper 14/130

Rebalancing in the Euro Area and Cyclicality of Current Account Adjustments

Thierry Tressel; Shengzu Wang

Working Paper 14/131

Progress Toward External Adjustment in the Euro Area Periphery and the Baltics

Joong Shik Kang; Jay C. Shambaugh

Working Paper 14/132

Sovereign Debt Restructurings in Belize: Achievements and Challenges Ahead

Tamon Asonuma; Gerardo Peraza; Kristine Vitola; Takahiro Tsuda

Working Paper 14/133

Macroprudential Solvency Stress Testing of the Insurance Sector

Andreas A. Jobst; Nobuyasu Sugimoto; Timo Broszeit

Working Paper 14/134

Mauritius the Drivers of Growth—Can the Past be Extended?

Katsiaryna Svirydzenka; Martin Petri

Working Paper 14/135

Middle East Transitions: A Long, Hard Road

Shahid Yusuf

Working Paper 14/136

Real and Financial Vulnerabilities from Crossborder Banking Linkages

Kyunghun Kim; Srobona Mitra

Working Paper 14/137

Strategies for Reforming Korea’s Labor Market to Foster Growth

Mai Dao; Davide Furceri; Tae-Jeong Kim; Meeyeon Kim; Jisoo Hwang

Working Paper 14/138

Japan’s Corporate Income Tax: Facts, Issues, and Reform Options

Ruud A. de Mooij; Ikuo Saito

Working Paper 14/139

Is Japan’s Population Aging Deflationary?

Derek Anderson; Dennis P. J. Botman; Ben Hunt

Working Paper 14/140

Unstash the Cash! Corporate Governance Reform in Japan

Chie Aoyagi; Giovanni Ganelli

Working Paper 14/141

Balance Sheet Repair and Corporate Investment in Japan

Joong Shik Kang

Working Paper 14/142

Health Spending in Japan: Macro-Fiscal Implications and Reform Options

Masahiro Nozaki; Kenichiro Kashiwase; Ikuo Saito

Working Paper 14/143

Africa Rising: Harnessing the Demographic Dividend

Paulo Drummond; Vimal Thakoor; Shu Yu

IMF Working Papers and other IMF publications can be downloaded in full-text format from the Research at the IMF website: http://www.imf.org/research.