There has been unusually high activity on central banks’ balance sheets in recent years.
Look for our next post on March 23.
February 3, 2016
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 29, 2016
Just Released: New Web Feature Provides Timely Data on the Job Market for Recent College Graduates
Jaison R. Abel and Richard Deitz Many newly minted college graduates entering the labor market in the wake of the Great Recession have had a tough time finding good jobs. But just how difficult has it been, and are things getting better? And for which graduates? These questions can be difficult to answer because timely […]
January 15, 2016
January 13, 2016
Fundamental Disagreement: How Much and Why?
Richard K. Crump and Stefano Eusepi Everyone disagrees, even professional forecasters, especially about big economic questions. Has potential output growth changed since the financial crisis? Are we bound for a period of “secular stagnation”? Will the European economy rebound? When is inflation getting back to mandate-consistent level? In this post, we document to what degree […]
January 11, 2016
Working as a Barista After College Is Not as Common as You Might Think
Jaison R. Abel and Richard Deitz The image of a newly minted college graduate working behind the counter of a hip coffee shop has become a hallmark of the plight of recent college graduates following the Great Recession. Recurring news stories about young college graduates stuck in low-skilled jobs make it easy to see why […]
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.
Posted at 7:00 am in Exchange Rates, Household Finance, Inflation, International Economics | Permalink
January 5, 2016
Who is Driving the Recent Decline in Consumer Inflation Expectations?
The expectations of U.S. consumers about inflation have declined to record lows over the past several months.
January 4, 2016
Characterizing the Rising Settlement Fails in Seasoned Treasury Securities
Michael J. Fleming and Frank M. Keane Note: Updated versions of the charts in this post showing data through March 31, 2016, can be viewed here. In a 2014 post, we described what settlement fails are, why they arise and matter, and how they can be measured. A subsequent post explored the determinants of the […]
RSS Feed
Follow Liberty Street Economics
