322 posts on "Liberty Street Economics"
October 21, 2016
From the Vault: Funds, Flight, and Financial Stability
The money market industry is in the midst of significant change. With the implementation this month of new Securities and Exchange Commission rules designed to make money market funds (MMFs) more resilient to stress, institutional prime and tax-exempt funds must report more accurate prices reflecting the net asset value (NAV) of shares based on market prices for the funds’ asset holdings, rather than promising a fixed NAV of $1 per share. The rules also permit prime funds, which invest in a mixture of corporate debt, certificates of deposit, and repurchase agreements, to impose fees or set limits on investors who redeem shares when market conditions sharply deteriorate. (Funds investing in government securities, which are more stable, are not subject to the new rules.) These changes, driven by a run on MMFs at the height of the financial crisis, add to earlier risk-limiting rules on portfolio holdings.
Posted at 7:00 am in Financial Institutions, Financial Markets, Regulation | Permalink | Comments (1)
September 30, 2016
From the Vault: Does Forward Guidance Work?
This post takes a look at research assessing the effectiveness of forward guidance in monetary policy communications.
May 4, 2016
Why Dealers Trade in GCF Repo®
Analysis using confidential market data shows that the majority of individual dealers follow consistent strategies in GCF Repo, where dealers are net borrowers or lenders on almost every day that they are active.
March 25, 2016
Happy Fifth Birthday, LSE!
When we launched our research blog five years ago this week, we didn’t expect to set any internet traffic records while writing about economics. Still, we saw that a blog would be a good way to build familiarity with our research and policy analysis, and to share the expertise of our staff when it’s relevant to issues in the public eye. As I said back at the birth, our goal was to deliver “lively, clear, and analytically sound” posts and, in that, I think we have succeeded.
March 4, 2016
Hey, Economist! How Well Do We Weather Snowstorms?
In a Q&A interview, the New York Fed’s Jason Bram sheds light on how economists measure the cost of a snowstorm.
February 26, 2016
From the Vault: The Path of Interest Rates
Numerous posts in the Liberty Street Economics archive cover the measurement and dynamics of the natural rate of interest as well as its use as a benchmark for calibrating monetary policy settings.
August 25, 2015
Incentive Pay and Gender Compensation Gaps for Top Executives
Stefania Albanesi, Claudia Olivetti, and Maria Prados The persistence of a gender gap in wages is shaping the debate over women’s equality in the workplace and underscores the challenge facing policymakers as they consider their potential role in closing it. While the disparity affects females at all income levels, women in professional and managerial occupations […]
July 13, 2015
A Discussion of Thomas Piketty’s Capital in the Twenty‑First Century: By How Much Is r Greater than g?
Maxim Pinkovskiy describes the arguments that Thomas Piketty makes to conclude that wealth inequality will rise and that global capital taxation is needed to stop it, and offers a critical discussion of the arguments.
April 15, 2015
Please Read This before Betting against Government Bond Betas
Mounting evidence says that “low-risk” investing delivers superior returns, comparable to strategies based on value, size, and momentum.
May 23, 2013
Just Released: The New York Fed Staff Forecast—May 2013
Jonathan McCarthy and Richard Peach As we did last year around this time, we’re presenting the New York Fed staff outlook for the U.S. economy to the Bank’s Economic Advisory Panel at today’s meeting. It provides an opportunity to get valuable feedback from leading economists in academia and the private sector on the staff forecast; such feedback […]
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