New Liberty Street Economics analysis by Asani Sarkar investigates whether the COVID-19 pandemic has led to an increase in implicit TBTF subsidies for large firms.
The authors discuss a common distinction made between “token-based” and “account-based” digital currencies, noting that the distinction is problematic since Bitcoin and many other digital currencies satisfy both definitions.
Fleming and Ruela take a first look at the U.S. government’s new 20-year bond, using a short sample of available data to describe its trading activity and liquidity.
Erol and Lee consider the cat-and-mouse game played between financial regulators and those attempting to trade on inside information, including how insiders might form networks in order to circumvent restrictions, and how regulators might cope with insiders’ tactics.
This post documents dislocations in the commercial paper market following the COVID-19 outbreak that motivated the Fed to create the Commercial Paper Funding Facility, and tracks the subsequent improvement in market conditions.
The rapid increase in U.S. oil production of recent years was looking difficult to sustain before the pandemic, as evidenced by the limited profitability of the sector. Now, U.S. producers may have to bear the brunt of the global supply adjustment needed over the near term.
In this post, the authors review the Fed’s action following the coronavirus outbreak, and compare it with the response to the 2007-09 financial crisis.
New research finds that there is a cyclical nature to the benefits of bank supervisory attention: in normal times, the benefits are smaller, but during downturns the more closely supervised banks exhibit better loan performance and lower earnings volatility.
The March Survey of Consumer Expectations, which was fielded between March 2 and 31, records a substantial deterioration in financial and economic expectations, including sharp declines in household income and spending growth expectations.