Designing Executive Compensation to Curb Bank Risk Taking
The financial crisis and its aftermath have spurred calls for bank compensation packages that mitigate risk-taking incentives.
Unintended Consequences in School Accountability Policies
Over the past two decades, state and federal education policies have tried to hold schools more accountable for educating their students.
The Liberty Street Economics Blog: An Update on Our Experience
Since the launch of the Liberty Street Economics blog in March 2011, our economists have published more than eighty-five posts on a range of issues such as financial sector reform, the global role of the dollar, the federal debt ceiling, and the U.S.-China trade imbalance.
The Failure to Forecast the Great Recession
The economics profession has been appropriately criticized for its failure to forecast the large fall in U.S. house prices and its propagation first into an unprecedented financial crisis and subsequently into the Great Recession.
How Might Increased Transparency Affect the CDS Market?
The credit default swap (CDS) market has grown rapidly since the asset class was developed in the 1990s.
Job Polarization in the United States: A Widening Gap and Shrinking Middle
Over recent decades, the U.S. workforce has undergone a dramatic restructuring in response to changes in technology, trade, and consumption patterns.
Historical Echoes: What Makes a Bank Look Like a Bank?
We know what a bank looks like: It’s typically of solid construction with classical architectural features.
Why Is There a “Zero Lower Bound” on Interest Rates?
Economists often talk about nominal interest rates having a “zero lower bound,” meaning they should not be expected to fall below zero.
The Evolution of Federal Debt Ceilings
It’s hardly news that Congress sets a statutory limit on aggregate Treasury indebtedness.
The Debt Ceiling as a “Fiscal Rule”
A few months ago, the federal government was once again confronted with the need to raise the statutory limit on the amount of debt issued by the Treasury.