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63 posts on "Exchange Rates"
February 3, 2016

What Is the Composition of Central Bank Balance Sheets in Normal Times?

There has been unusually high activity on central banks’ balance sheets in recent years.

February 2, 2016

Counterparties and Collateral Requirements for Implementing Monetary Policy

What types of counterparties can borrow from or lend to a central bank, and what kind of collateral must they possess in order to receive a loan? These are two key aspects of a central bank’s monetary policy implementation framework. Since at least the nineteenth century, it has been understood that an important role of central banks is to lend to solvent but illiquid institutions, particularly during a crisis, as this provides liquidity insurance to the financial system. They also provide liquidity to markets during normal times as a means to implement monetary policy. Central banks that rely on scarcity of reserves need to adjust the supply of liquidity in the market, as described in our previous post[add link]. In this post, we focus on liquidity provision related to the conduct of monetary policy .

February 1, 2016

Standard Elements of a Monetary Policy Implementation Framework

Emily Eisner, Antoine Martin, and Ylva Søvik In the minutes of the July 2015 Federal Open Market Committee (FOMC) meeting, the chair indicated that Federal Reserve staff would undertake an extended effort to evaluate potential long-run monetary policy implementation frameworks. But what is a central bank’s monetary policy implementation framework? In a series of four […]

January 6, 2016

Hedging Income Fluctuations with Foreign Currency Assets

The world has gone through a process of financial globalization over the past two decades, with countries increasing their holdings of foreign assets and liabilities.

October 16, 2015

Just Released: Regional Service Sector Resilient even as Manufacturing Slumps

The October 2015 Business Leaders Survey of regional service firms, released today, paints a considerably more benign picture of local business conditions than the more troubling October 2015 Empire State Manufacturing Survey, released yesterday.

August 18, 2015

Liquidity during Flash Events

“Flash events,” extremely large price moves and reversals over just a few minutes, have occurred in some of the world’s most liquid markets in recent years.

August 12, 2015

Do Asset Purchase Programs Push Capital Abroad?

Thomas Klitgaard and David O. Lucca Euro area sovereign bond yields fell to record lows and the euro weakened after the European Central Bank (ECB) dramatically expanded its asset purchase program in early 2015. Some analysts predicted massive financial outflows spilling out of the euro area and affecting global markets as investors sought higher yields […]

July 17, 2015

The Effect of the Strong Dollar on U.S. Growth

The recent strengthening of the U.S. dollar has raised concerns about its impact on U.S. GDP growth.

May 27, 2015

The Eurodollar Market in the United States

In February, the Federal Reserve Bank of New York’s trading desk announced it will publish a new overnight bank funding rate early next year.

February 6, 2015

Highlights from the Global Research Forum on International Macroeconomics and Finance

International financial flows are a key feature of the global landscape and are relevant in many ways for central banks.

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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.

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