How the High Level of Reserves Benefits the Payment System
Since October 2008, the Federal Reserve has increased the size of its balance sheet by lending to financial intermediaries and purchasing assets on a large scale.
Do Payday Lenders Target Minorities?
Payday lenders make small, short-term loans to millions of households across the country.
When Do Trading Frictions Increase Liquidity?
Economists tend to assume that frictions that limit trading in financial markets reduce liquidity and lower investor welfare.
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.
The Evolution of Federal Debt Ceilings
It’s hardly news that Congress sets a statutory limit on aggregate Treasury indebtedness.
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.
Sizing Up the Fed’s Maturity Extension Program
The Federal Open Market Committee (FOMC) recently announced its intention to extend the average maturity of its holdings of securities by purchasing $400 billion of Treasury securities with remaining maturities of six years to thirty years and selling an equal amount of Treasury securities with remaining maturities of three years or less.
Just Released: Money and Payments Workshop Examines Repo Market Reform
We have just posted the proceedings of a workshop held on October 7, 2011, which gathered the very latest thinking by academics, central bankers, and practitioners on how the repo market should be reformed to help avoid a recurrence of the recent financial crisis.