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4 posts from March 2019

March 27, 2019

Expecting the Unexpected: Job Losses and Household Spending



LSE_Expecting the Unexpected: Job Losses and Household Spending

Unemployment risk constitutes one of the most significant sources of uncertainty facing workers in the United States. A large body of work has carefully documented that job loss may have long-term effects on one’s career, depressing earnings by as much as 20 percent after fifteen to twenty years. Given the severity of a job loss for earnings, an important question is how much such an event affects one’s standard of living during a spell of unemployment. This blog post explores how unemployment and expectations of job loss interact to affect household spending.

Continue reading "Expecting the Unexpected: Job Losses and Household Spending" »

Posted by Blog Author at 7:00 AM in Expectations, Household Finance, Labor Market, Macroecon, Unemployment | Permalink | Comments (3)

March 25, 2019

Deciphering Americans’ Views on Cryptocurrencies



LSE_2019_crytocurrencies-perception_martin_460_art

Having witnessed the dramatic rise and fall in the value of cryptocurrencies over the past year, we wanted to learn more about what motivates people to participate in this market. To find out, we included a special set of questions in the May 2018 Survey of Consumer Expectations, a project of the New York Fed’s Center for Microeconomic Data. This blog post summarizes the results of that survey, shedding light on U.S. consumers’ depth of participation in cryptocurrencies and their motives for entering this new market.

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Posted by Blog Author at 7:00 AM in Banks, Credit, Cryptocurrencies, Financial Institutions, Financial Markets, Monetary Policy | Permalink | Comments (0)

March 06, 2019

Assessing the Price Impact of Treasury Market Workups



LSE_2019_Assessing the Price Impact of Treasury Market Workups

The price impact of a trade derives largely from its information content. The “workup” mechanism, a trading protocol used in the U.S. Treasury securities market, is designed to mitigate the instantaneous price impact of a trade by allowing market participants to trade additional quantities of a security after a buyer and seller first agree on its price. Nevertheless, workup trades are not necessarily free of information. In this post, we assess the role of workups in price discovery, following our recent paper in the Review of Asset Pricing Studies (an earlier version of which was released as a New York Fed staff report).

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Posted by Blog Author at 7:00 AM in Fed Funds, Financial Markets, Liquidity, Treasury | Permalink | Comments (1)

March 04, 2019

The Sensitivity of Long-Term Interest Rates: A Tale of Two Frequencies



LSE_The Sensitivity of Long-Term Interest Rates: A Tale of Two Frequencies

The sensitivity of long-term interest rates to short-term interest rates is a central feature of the yield curve. This post, which draws on our Staff Report, shows that long- and short-term rates co-move to a surprising extent at high frequencies (over daily or monthly periods). However, since 2000, they co-move far less at lower frequencies (over six months or a year). We discuss potential explanations for this finding and its implications for the transmission of monetary policy.

Continue reading "The Sensitivity of Long-Term Interest Rates: A Tale of Two Frequencies" »

Posted by Blog Author at 7:00 AM in Financial Markets, Macroecon, Monetary Policy | Permalink | Comments (1)

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Liberty Street Economics features insight and analysis from New York Fed economists working at the intersection of research and policy. Launched in 2011, the blog takes its name from the Bank’s headquarters at 33 Liberty Street in Manhattan’s Financial District.

The editors are Michael Fleming, Andrew Haughwout, Thomas Klitgaard, and Asani Sarkar, all economists in the Bank’s Research Group.

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