This study investigates the under-explored impact of banking deregulation on bank risk-taking. Analyzing China's 2009 deregulation as a natural experiment, we find that deregulated banks significantly increase their risk-taking. Mechanism analysis identifies the bank balance sheet capacity channel: deregulation boosts bank net interest margins, strengthening their financial capacity and thus their risk appetite. While this policy successfully improves long-term credit access for firms in underserved regions, especially smaller ones, it creates a critical trade-off for policymakers between supporting the real economy and safeguarding financial stability.

This study examines the impact of corporate digital mergers and acquisitions (M&As) on the development of New Quality Productive Forces (NQPF). Using a multi-period difference-in-differences (DID) methodology with data from Chinese listed firms (2011-2021), we demonstrate that digital M&As significantly enhance NQPF. We identify two key mechanisms driving this effect: enhanced firm innovation capability and accelerated data asset accumulation. Furthermore, our findings reveal that external factors including advanced industrial structure, higher urban human capital, and lower economic policy uncertainty positively moderate this relationship. This research introduces a novel NQPF measurement index and provides actionable insights for firms and policymakers seeking to leverage digital transformation for high-quality economic development.

A groundbreaking study from New Zealand demonstrates that central bank "forward guidance" significantly strengthens the transmission of monetary policy. Analyzing New Zealand's banking data, the research finds that providing clear communication about the future path of interest rates enhances the pass-through from the official policy rate to bank deposit and lending rates. The results show improved long-term pass-through, especially for time deposits and fixed mortgages, alongside a slight acceleration in short-term adjustments. These findings offer critical evidence for central banks worldwide on the power of communication as a policy tool.

This study explores the profound implications of ambiguity aversion for asset price dynamics and wealth distribution. In a continuous-time macroeconomic model with heterogeneous agents and financial frictions, we demonstrate analytically and numerically that ambiguity aversion leads to a lower risk-free rate, reduced consumption, higher precautionary savings, and wealth redistribution, resulting in significant asset price misalignment. These distortions cause universal welfare loss, making a case for policy intervention. We find that while distortionary capital taxes can mitigate price misalignment, conventional monetary policy, if well-calibrated, can reduce distortions and improve welfare without such trade-offs.

A new large-scale study reveals that uncertainty in climate policy (CPU) is a significant driver for improving corporate Environmental, Social, and Governance (ESG) performance. Analysing data from 4,490 Chinese listed companies (2011-2022), researchers found a strong positive correlation between CPU and ESG scores. The primary motivation is risk mitigation: companies facing higher systemic risk use enhanced ESG performance as a strategic shield. The effect is most pronounced in non-state-owned enterprises, heavy-polluting industries, and highly competitive markets. The findings provide crucial insights for businesses strengthening sustainability strategies and for policymakers aiming to foster resilient, low-carbon economic growth.