Why (or Why Not) Keep Paying Interest on Excess Reserves?
In the fall of 2008, the Fed added new policy tools to its portfolio of techniques for implementing monetary policy.
Federal Reserve Liquidity Facilities Gross $22 Billion for U.S. Taxpayers
During the 2007-09 crisis, the Federal Reserve took many measures to mitigate
disruptions in financial markets, including the introduction or expansion of
liquidity facilities.
The Minimum Balance at Risk: A Proposal to Stabilize Money Market Funds
In a June post, we explained why the design of money market funds (MMFs) makes them prone to runs and thereby contributes to financial instability. Today, we outline a proposal for strengthening MMFs that we’ve put forward in a recent New York Fed staff report.
Tracking the U.S. Banking Industry
The New York Fed has recently published the first edition of a new quarterly report tracking the aggregate financial condition of consolidated U.S. banking organizations. In this post, we describe the methodology used to construct the statistics in the report as well as present and briefly discuss some of the findings.
Is U.S. Monetary Policy Seasonal?
Many economic time series display periodic and predictable patterns within each calendar year, generally referred to as seasonal effects.
Soaring Tuitions: Are Public Funding Cuts to Blame?
Public colleges and universities play a vital role in training a state’s workforce, yet state support for higher education has been declining for years.
Interest on Excess Reserves and Cash “Parked” at the Fed
The European Central Bank recently lowered from 0.25 percent to zero the interest rate it pays on funds that Eurozone banks hold on deposit with it.
The Fed’s Emergency Liquidity Facilities during the Financial Crisis: The CPFF
This is the first post in a series that details the steps taken by the Fed in its role as lender of last resort during the 2007-09 financial crisis.
The European Debt Crisis and the Dollar Funding Gap
Against the backdrop of the ongoing debt crisis in Europe, the difficulties faced by European banks in borrowing U.S. dollars have attracted increased attention.
The Rise of the Originate‑to‑Distribute Model and the Role of Banks in Financial Intermediation
In yesterday’s post, Nicola Cetorelli argued that while financial intermediation has changed dramatically over the last two decades, banks have adapted and remained key players in the process of channeling funds between lenders and borrowers.