The Federal Reserve Bank of New York works to promote sound and well-functioning financial systems and markets through its provision of industry and payment services, advancement of infrastructure reform in key markets and training and educational support to international institutions.
The New York Fed engages with individuals, households and businesses in the Second District and maintains an active dialogue in the region. The Bank gathers and shares regional economic intelligence to inform our community and policy makers, and promotes sound financial and economic decisions through community development and education programs.
We encounter important economic data every single day. From reports on housing starts to unemployment to gross domestic product to construction spending, economic data are constantly shaping the news and our world. Now, the Census Bureau has made it even easier to keep our fingers on the pulse of these important economic indicators, with the launch of its first mobile application, “America’s Economy.”
Unlike much of the nation, New York City has seen a robust rebound in employment since the recession. In early 2012, employment here reached 3.86 million, the largest number of jobs ever recorded. Yet the city’s unemployment rate has risen in recent months and is now 10 percent—its peak during the recession—and well above the 5 percent rate seen before the downturn. This lack of improvement reflects the fact that the number of employed residents of the city has not rebounded at all from its losses during the 2008-09 downturn. While commuters from outside the city have always been a part of the employment scene, particularly in Manhattan, the recent divergence between the brisk growth in jobs in the city and the lack of growth in the number of employed residents in the city is unprecedented. Moreover, this gap between the two measures continues to widen, raising some questions as to how strong New York City’s recovery actually is. In this post, we explore several alternative explanations for the lack of growth in the employment of city residents in the face of a sharp recovery and expansion of jobs. While there are several potential explanations, the stagnation of resident employment remains largely a puzzle.
Elements of finance and banking have found their way into novels for a long time (see one list of sites about such fiction). However, in 1891, a novel was published in France that was principally about the Paris Bourse (stock exchange) and a bank (Banque Universelle) created for less than wholesome reasons, mired in corruption, and eventually destroyed. The novel was L’Argent (Money) by the influential French writer Émile Zola. The events portrayed in the novel are based on actual events in the French Bourse and the short history of an actual bank, the Union Générale. This bank was created in 1876, failed in 1882, and was at the heart of a somewhat religion-based battle within the French financial world. The failure of the Union Générale triggered the Paris Bourse Crash of 1882.
Against the backdrop of the ongoing debt crisis in Europe, the difficulties faced by European banks in borrowing U.S. dollars have attracted increased attention. The inability to borrow dollars has been partially responsible for European banks’ decisions to sell dollar-denominated assets and reduce their lending activity in the United States, to the possible detriment of U.S. companies and global financial markets. In this post, we discuss the genesis of European banks’ dollar funding gap problem and the steps taken by central banks to help fill this gap. While we focus on European banks in this post, our discussion applies more generally to global banks that rely on short-term, foreign currency borrowings.
Michele Braun, Adam Copeland, Alexa Herlach, and Radhika Mithal
Transactions denominated in U.S. dollars flow around the clock and around the globe, filling the pipelines that support commerce. On a typical day, more than $14 trillion of dollar-denominated payments is routed through the banking system. Critical to a well-functioning economy are the timing and smooth flow of dollars for large-value transactions and the infrastructure that enables that dollar flow. This financial market infrastructure provides essential economic services—“plumbing” for the economy—and is made up of a variety of entities. In this post, we describe this financial market infrastructure, providing a simple map of its main entities and describing the flow of U.S. dollar payments among these entities. A more detailed study of intraday liquidity flows has been released by the Payments Risk Committee.
Liberty Street Economics features insight and analysis from economists working at the intersection of research and policy. The editors are Michael Fleming, Andrew Haughwout, Thomas Klitgaard, and Donald Morgan.
The views expressed are those of the authors, and do not necessarily reflect the position of the New York Fed or the Federal Reserve System.
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