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.
Just Released: Conference on Global Systemic Risk Explores Four Key Questions
The 2007-09 financial crisis spread to markets and institutions around the world, demonstrating why global systemic risk is a major concern in modern financial markets.
Remaining Risks in the Tri‑Party Repo Market
The tri-party repo market is one in which large U.S. securities firms and bank securities affiliates (dealers) finance much of their fixed-income securities inventories.
Using Crisis Losses to Calibrate a Regulatory Capital Buffer
In response to the enormous losses experienced during the recent financial crisis, the Basel Committee on Banking Supervision reached a new international agreement on the amount of capital banks will be required to hold.