How tight is the labor market? The unemployment rate is down substantially from its October 2009 peak, but two-thirds of the decline is due to people dropping out of the labor force.
February 12, 2014
February 10, 2014
The Transformation of Banking: Tying Loan Interest Rates to Borrowers’ Credit Default Swap Spreads
Banks’ practice of tying loan interest rates to borrowers’ credit default swap (CDS) spreads constitutes one of the most recent financial innovations.
February 7, 2014
Crisis Chronicles: The Commercial Credit Crisis of 1763 and Today’s Tri‑Party Repo Market
During the economic boom and credit expansion that followed the Seven Years’ War (1756-63), Berlin was the equivalent of an emerging market, Amsterdam’s merchant bankers were the primary sources of credit, and the Hamburg banking houses served as intermediaries between the two.
February 5, 2014
Comparing U.S. and Euro Area Unemployment Rates
Euro area growth has been stalled since 2010, mired in the sovereign debt crisis, while the United States has managed a slow but steady recovery following the Great Recession.
February 3, 2014
A Mis‑Leading Labor Market Indicator
The unemployment rate is a popular measure of the condition of the labor market.
January 17, 2014
Historical Echoes: Maiden Lane, Where Now Such Waves of Commerce Flow
In the 1600s, a stream flowed near the land now occupied by the Federal Reserve Bank of New York, running all the way to the East River.
January 16, 2014
Just Released: Introducing the Business Leaders Survey
Today, the Federal Reserve Bank of New York begins releasing its monthly survey of regional business activity, called the Business Leaders Survey.
Posted at 10:15 am in Regional Analysis | Permalink
January 15, 2014
Why Do Banks Feel Discount Window Stigma?
Olivier Armantier Even when banks face acute liquidity shortages, they often appear reluctant to borrow at the New York Fed’s discount window (DW) out of concern that such borrowing may be interpreted as a sign of financial weakness. This phenomenon is often called “DW stigma.” In this post, we explore possible reasons why banks may […]
January 13, 2014
Discount Window Stigma
One of the main missions of central banks is to act as a lender of last resort to the banking system.
Posted at 7:00 am in Financial Institutions | Permalink
January 10, 2014
Crisis Chronicles: The Mississippi Bubble of 1720 and the European Debt Crisis
Convicted murderer and millionaire gambler John Law spotted an opportunity to leverage paper money and credit to finance trade.
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