Liberty Street Economics

Look for our next post on November 3.

October 16, 2017

Discretionary Services Spending Has Finally Made It Back (to 2007)

The current economic expansion is now the third-longest expansion in U.S. history (based on National Bureau of Economic Research [NBER] dating of U.S. business cycles). Even so, average growth in this expansion—a 2.1 percent annual rate—has been extraordinarily weak.

Posted at 7:00 am in Macroeconomics, Recession | Permalink | Comments (2)
October 13, 2017

Upstate New York’s Expansion Is Losing Steam

All in all, the upstate New York economy fared pretty well during the last business cycle.

October 12, 2017

Just Released: New York Fed Markets Data Dashboard

The Federal Reserve Bank of New York releases data on a number of market operations, reference rates, monetary policy expectations, and Federal Reserve securities portfolio holdings. These data are released at different times, for different types of securities or rates, and for different audiences.

October 11, 2017

U.S. Monetary Policy as a Changing Driver of Global Liquidity

International capital flows channel large volumes of funds across borders to both public and private sector borrowers. As they are critically important for economic growth and financial stability, understanding their main drivers is crucial for both policymakers and researchers. In this post, we explore the evolving impact of changes in U.S. monetary policy on global liquidity.

Posted at 7:00 am in Liquidity, Monetary Policy | Permalink | Comments (2)
October 5, 2017

How Is Online Shopping Affecting Retail Employment?

It’s been said that if you want to know how the economy is doing, look at how many people are carrying shopping bags. That adage may not hold so well today. The rise of the internet and e-commerce over the past two decades has chipped away at the market share of “brick and mortar” retailers.

October 4, 2017

The Cost and Duration of Excess Funding Capacity in Tri‑Party Repo

In a previous post, we showed that dealers sometimes enter into tri-party repo contracts to acquire excess funding capacity, and that this strategy is most prevalent for the agency mortgage-backed securities (MBS) and equity asset classes. In this post, we examine the maturity of the repos used to pursue this strategy and estimate the associated costs.

October 2, 2017

Excess Funding Capacity in Tri‑Party Repo

Security dealers sometimes enter into tri-party repo contracts to fund one class of securities with the expectation they will wind up settling the contract with higher quality securities.

Posted at 7:00 am in Financial Intermediation, Repo | Permalink
September 29, 2017

Hey, Economist! Tell Us about Your First Year as Research Director of the New York Fed

An Interview with Beverly Hirtle A year has passed since Beverly Hirtle was named director of research for the Federal Reserve Bank of New York. Before assuming that position, Bev played many roles at the Bank over the last thirty years, including serving as the deputy chair of the Federal Reserve Model Oversight Group responsible […]

Posted at 7:00 am in Federal Reserve, Hey, Economist! | Permalink
September 27, 2017

Why Pay Interest on Excess Reserve Balances?

In a previous post, we described some reasons why it is beneficial to pay interest on required reserve balances. Here we turn to arguments in favor of paying interest on excess reserve balances. Former Federal Reserve Chairman Ben Bernanke and former Vice Chairman Donald Kohn recently discussed many potential benefits of paying interest on excess reserve balances and some common misunderstandings, including that paying interest on reserves restricts bank lending and provides a subsidy to banks. In this post, we focus primarily on benefits related to the efficiency of the payment system and the reduction in the need for the provision of credit by the Fed when operating in a framework of abundant reserves.

September 26, 2017

The Treasury Market Practices Group: A Consequential First Decade

The Treasury Market Practices Group (TMPG) was formed in February 2007 in response to the appearance of some questionable trading practices in the secondary market for U.S. Treasury securities.

Posted at 7:00 am in Regulation, Treasury | Permalink
About the Blog

Liberty Street Economics features insight and analysis from New York Fed economists working at the intersection of research and policy. Launched in 2011, the blog takes its name from the Bank’s headquarters at 33 Liberty Street in Manhattan’s Financial District.

The editors are Michael Fleming, Andrew Haughwout, Thomas Klitgaard, and Asani Sarkar, all economists in the Bank’s Research Group.

Liberty Street Economics does not publish new posts during the blackout periods surrounding Federal Open Market Committee meetings.

The views expressed are those of the authors, and do not necessarily reflect the position of the New York Fed or the Federal Reserve System.

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