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.
July 17, 2012
Just Released: Housing Checkup–Has the Market Finally Bottomed Out?
In this post, we examine a number of important housing market “vital signs” that collectively help to indicate the health status of local markets at the county level.
July 16, 2012
Introducing a Series on the Evolution of Banks and Financial Intermediation
It used to be simple: Asked how to describe financial intermediation, you would just mention the word “bank.”
Posted at 9:00 am in Banks, Financial Institutions, Financial Intermediation, Financial Markets, Nonbank (NBFI), Regulation | Permalink
July 13, 2012
Historical Echoes: Whip Inflation Now … and Then
In October I974, with consumer inflation running at more than 10 percent annually, President Gerald Ford gave a now famous speech in which he proclaimed: “There is only one point on which all advisers have agreed: We must whip inflation right now.”
July 11, 2012
The Puzzling Pre‑FOMC Announcement “Drift”
For many years, economists have struggled to explain the “equity premium puzzle”—the fact that the average return on stocks is larger than what would be expected to compensate for their riskiness.
Posted at 7:00 am in Expectations, Financial Markets, Monetary Policy, Stocks | Permalink | Comments (9)
July 9, 2012
Location, Location, and Pacification: The Effect of Crime Reduction on Residential Property Value
In this post, we document the relationship between crime and house prices in the city of Rio de Janeiro, Brazil. One fully expects crime, as a public “bad,” to exert a downward force on prices; indeed, this is a common finding in the literature on amenity valuation.
July 6, 2012
Historical Echoes: The Creation of the Contemporary U.S. Mortgage
Residential mortgages, as they are known in the United States, are fairly modern creatures.
July 2, 2012
CCAR: More than a Stress Test
The Federal Reserve recently released the results of its latest stress test of large bank holding companies (BHCs).
June 29, 2012
Historical Echoes: A Water Machine that Simulates the Economy
In 1949, engineer/economist A. W. H. (Bill) Phillips unveiled a mechanical economic model, the Phillips machine, which could demonstrate—by pushing colored water through clear pipes—how money moves through the economy.
June 27, 2012
Fiscal Drag from the State and Local Sector?
With July just around the corner, most cities and states are preparing for the start of a new fiscal year.
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