"Federal Reserve Lending to Troubled Banks During the Financial Crisis,...
Numerous commentaries have questioned both the legality and appropriateness of Federal Reserve lend- ing to banks during the recent financial crisis. This article addresses ...
View Article"An Application of Conventional Sovereign Debt Sustainability Analysis to the...
The developing international debt crisis has unleashed unanticipated fears that more governments in some advanced economies may default on their sovereign debt and trigger a global financial tsunami....
View Article"Liquidity Shocks, Real Interest Rates, and Global Imbalances", by David...
The author uses a simple neoclassical model to show how liquidity shocks at home and abroad can contribute to trade imbalances and low real interest rates. The author’s ...
View Article"Milton Friedman, the Demand for Money, and the ECB’s Monetary Policy...
The European Central Bank (ECB) assigns greater weight to the role of money in its monetary policy strategy than most, if not all, other major central banks. Nevertheless, reflecting the ...
View Article"Withdrawal History, Private Information, and Bank Runs", by Craig P....
This paper provides a simple two-depositor, two-stage model to understand how a bank’s withdrawal history affects an individual’s decision about withdrawals, which could possibly trigger bank runs....
View Article"The Extent and Impact of Outsourcing: Evidence from Germany", by Craig P....
The authors use data from several sources, including plant-level data from the manufacturing sector in Germany, to expand the literature on outsourcing. They find that, in Germany, the extent of...
View Article"Where There’s a Smoking Ban, There’s Still Fire", by Michael T. Owyang and...
Since 2001, the pervasiveness of 100-percent smoke-free bans has increased dramatically—from 32 local laws in 2001 to 308 by the end of 2009. The authors use individual-level data from the Behavioral...
View Article"Evolution, Impact, and Limitations of Unusual Central Bank Policy Activism",...
In the United States and Europe, central banks have essentially been the only policymaking entities consistently willing and able to take bold measures to deal with an unusually complex set of...
View Article"Okun’s Law over the Business Cycle: Was the Great Recession All That...
In 1962, Arthur Okun posited an empirical relationship between the change in the unemployment rate and real output growth. Since then, the media, policymakers, pundits, and intermediate macro students...
View Article"Disentangling Diverse Measures: A Survey of Financial Stress Indexes", by...
The recent financial crisis helped emphasize the need for measures of financial conditions. In the wake of the crisis...
View Article"The Boom and Bust of U.S. Housing Prices from Various Geographic...
This paper summarizes changes in housing prices during the recent U.S. boom and bust from various geographic perspectives. Nationally, the Standard & Poor’s/Case-Shiller house price index ...
View Article"Sovereign Debt: A Modern Greek Tragedy", by Fernando M. Martin and...
The authors of this article provide a general introduction to the concept of sovereign debt—including the seductive nature of borrowing and the strategies associated with default—before analyzing the...
View Article"Do Countries with Greater Credit Constraints Receive More Foreign Aid?", by...
Donor nations may recognize that some developing nations face credit constraints in the world capital market. This knowledge may prompt donors to increase aid flows to alleviate the constraint. In such...
View Article"Global European Banks and the Financial Crisis", by Bryan J. Noeth and...
This paper reviews some of the recent studies on international capital flows with a focus on the role of European global banks. It presents a revision to the commonly held “global saving glut” view...
View Article"The U.S. Deficit/Debt Problem: A Longer-Run Perspective", by Daniel L. Thornton
The U.S. national debt now exceeds 100 percent of gross domestic product. Given that a significant amount of this debt is the result of governmental efforts to mitigate the effects of the financial...
View Article"Demographics, Redistribution, and Optimal Inflation", by James Bullard,...
The authors study the interaction among population demographics, the desire for intergenerational redistribution of resources in the economy, and the optimal inflation rate in a deterministic life...
View Article"International Trade, Female Labor, and Entrepreneurship in MENA Countries",...
Middle Eastern and North African (MENA) countries stand out in international comparisons of de jure obstacles to female employment and entrepreneurship. These obstacles manifest themselves in low rates...
View Article"Four Stories of Quantitative Easing", by Brett W. Fawley and Christopher J....
This article describes the circumstances of and motivations for the quantitative easing programs of the Federal Reserve, Bank of England, European Central Bank, and Bank of Japan during the recent...
View Article"U.S. Manufacturing and the Importance of International Trade: It’s Not What...
The public often gauges the strength of the U.S. economy by the performance of the manufacturing sector, especially by changes in manufacturing employment. When such employment declines, as has been...
View Article"Why Did Young Families Lose So Much Wealth During the Crisis? The Role of...
The authors use the Federal Reserve’s Survey of Consumer Finances to document a boom in home ownership and mortgage borrowing among young families in the years leading up to the recent financial...
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