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13 posts from April 2013

April 03, 2013

Just Released: February Report Points to Moderate Regional Economic Growth

Jason Bram and James Orr

The February Indexes of Coincident Economic Indicators (CEIs) for New York State, New York City, and New Jersey released today show activity expanding at a moderate pace across the region. Like those for January, the February CEIs incorporate the annual benchmark employment revisions for 2011 and 2012, and reveal that the economies of the region did not go off track as a result of the disruptions caused by Superstorm Sandy. (A recent blog post explores the employment effects of Sandy in the New York City metropolitan area.)

Continue reading "Just Released: February Report Points to Moderate Regional Economic Growth" »

Posted by Blog Author at 9:15 AM in Employment, Macroecon, Regional Analysis | Permalink | Comments (0)

I Want My Money Now: The Highs and Lows of Payments in Real Time

Parinitha Sastry and David Skeie

Peel back the layers of complex financial institutions and instruments, and you're left with individuals demanding to be paid, and to be paid quickly. Payments are the electricity that powers the entire financial system. The ability to securely send and receive timely payments is a prerequisite for commerce and the smooth functioning of financial markets. Despite the seemingly straightforward nature of the subject, a preliminary exploration of payments data offers insight into how institutions react to changing economic conditions. In this post, we aim to investigate recent volatility in the amount of payments, particularly during the recent financial crisis. We focus on estimating and extracting changing levels of payments required for interbank lending, which reflect banks’ varying needs for liquidity. We find that variables capturing macroeconomic conditions and financial market stress are additional large drivers of fluctuations in payments.

Continue reading "I Want My Money Now: The Highs and Lows of Payments in Real Time" »

Posted by Blog Author at 7:00 AM in Fed Funds, Financial Institutions, Financial Markets | Permalink | Comments (0)

April 01, 2013

How Liquid Is the Inflation Swap Market?

Michael Fleming and John Sporn

Inflation swaps are used to transfer inflation risk and make inferences about the future course of inflation. Despite the importance of this market to inflation hedgers, inflation speculators, and policymakers, there is little evidence on its liquidity. Based on an analysis of new and detailed data in this post we show that the market appears reasonably liquid and transparent despite low trading activity, likely reflecting the high liquidity of related markets for inflation risk. In a previous post, we examined similar issues for the broader interest rate derivatives market.


Continue reading "How Liquid Is the Inflation Swap Market?" »

Posted by Blog Author at 7:00 AM in Exchange Rates, Financial Markets | Permalink | Comments (1)

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