292 posts on "Financial Markets"
September 30, 2015
Natural Experiment Sheds Light on the Market Effects of Herding
Pension funds are expected to behave in a patient, countercyclical manner, making the most of low valuations over the business cycle to achieve high returns.
September 1, 2015
A Distributed Version of Repugnance as a Constraint on Markets
The 2012 Nobel Prize in economics was awarded to Alvin E. Roth and Lloyd S. Shapley for their work on matching problems.
August 31, 2015
August 28, 2015
Entry and Exit Leads to Zero Profit for Bitcoin Miners
In a previous post, we discussed bitcoin miners’ incentives to undertake a 51 percent attack given the current condition of the bitcoin market.
Posted at 7:00 am in Financial Markets | Permalink
August 19, 2015
High‑Frequency Cross‑Market Trading in U.S. Treasury Markets
Dobrislav Dobrev and Ernst Schaumburg Third in a five-part series The U.S. Treasury market is one of the deepest and most liquid markets in the world, with significant trading in both Treasury futures and benchmark securities. In this post, we examine the pattern of trading activity in these instruments and document the substantial increase in […]
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 17, 2015
Has U.S. Treasury Market Liquidity Deteriorated?
The issue of financial market liquidity has received tremendous attention lately. This partly arises from market participants’ concerns that regulatory and structural changes have reduced dealers’ market making abilities, but also from events such as the taper tantrum and the flash rally, in which Treasury prices fluctuated sharply amid seemingly little news. But is there really evidence of a sustained reduction in Treasury market liquidity?
Introduction to a Series on Market Liquidity
Market participants and policymakers have raised a number of concerns about the potential adverse effects of financial regulation on market liquidity—the ability to buy and sell securities quickly, at any time, at minimal cost.
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 […]
Posted at 7:00 am in Balance of Payments, Euro Area, Exchange Rates, Exports, Financial Markets, International Economics, Monetary Policy | Permalink | Comments (2)
August 10, 2015
History of Discount Window Stigma
In August 2007, at the onset of the recent financial crisis, the Federal Reserve encouraged banks to borrow from the discount window (DW) but few did so.
Posted at 7:00 am in Fed Funds, Financial Institutions, Financial Markets | Permalink | Comments (1)
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