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Category Archives: Financial System

Interest Rate Derivatives and Monetary Policy Expectations

NY Fed – Interest Rate Derivatives and Monetary Policy Expectations. Richard Crump, Emanuel Moench, William O’Boyle, Matthew Raskin, Carlo Rosa, and Lisa Stowe First in a two-part series – “Market expectations of the path of future policy rates can have important implications for financial markets and the economy. Because interest rate derivatives enable market participants toContinue Reading

Monthly Budget Review for November 2014

“The federal government’s budget deficit was $181 billion for the first two months of fiscal year 2015, $45 billion less than the shortfall recorded in October and November of last year, CBO estimates. That outcome was affected by shifts in the timing of certain payments. Without those shifts, the deficit would have declined by just $9 billion. TotalContinue Reading

2014 Financial Stability Conference

“Cleveland Fed and OFR Conference on December 4-5 in DC Focused on Approaches to Monitoring Financial Stability and Development/Implementation of Macroprudential Policy. This second annual Cleveland Fed/OFR conference brought together policymakers, market participants, and academics to discuss: Macroprudential policy development and implementation Tools that measure vulnerabilities in the financial system Measurement challenges in the implementation ofContinue Reading

Ending ‘Too Big to Fail’ – why Asia Pacific countries should embrace the Key Attributes

Capital Markets Law Journal Advance Access published November 28, 2014 – Royce Miller “Financial institutions (FIs) provide services that are critical to the smooth operation of the global economy and every national economy. Banks look after their customers’ money and provide money transmission services so that customers can be paid their salaries, pay their bills and withdraw cash throughContinue Reading

Payday Loans: Time for Review

Federal Reserve Bank of St. Louis: “Beginning in the 1980s and 1990s, storefront payday loan businesses began to spring up across the country and quickly became commonplace. Today, there are approximately 20,000 storefront lenders, an average of 6.3 payday stores for every 100,000 people. By comparison, in 2012, there were 14,157 McDonald’s restaurants in the United States. Additionally,Continue Reading

Office of Financial Research 2014 Annual Report

“This third annual report of the Office of Financial Research (OFR) assesses threats to U.S. financial stability, outlines OFR research that supports the assessment, and describes the OFR’s progress in meeting our mission. The report also evaluates policy initiatives for promoting financial stability and describes our work to improve the quality and scope of financial data and analysis. The OFR, financialContinue Reading

Federal Reserve Board Beige Book – December 3, 2014

Summary of Commentary on Current Economic Conditions by Federal Reserve District Prepared at the Federal Reserve Bank of Chicago and based on information collected on or before November 24, 2014. “Reports from the twelve Federal Reserve Districts suggest that national economic activity continued to expand in October and November. A number of Districts also noted thatContinue Reading

Experian Data Breach Resolution releases second annual data breach industry forecast

“Preventing and managing data breaches have become two of the highest priorities facing businesses today. To help executives plan ahead, Experian Data Breach Resolution announces the release of its second annual Data Breach Industry Forecast, a complimentary white paper outlining key issues and trends to watch for in 2015. Many evolving factors such as new threats, regulatory changesContinue Reading

Do Homeownership and Rent Subsidies Protect Individuals from Material Hardship?

Do Homeownership and Rent Subsidies Protect Individuals from Material Hardship? Robert I. Lerman and Sisi Zhang, November 2014. “Homeowners and subsidized renters experience significantly lower material hardship than unsubsidized renters, even after taking account of income, income variability, race, education, and family structure. Homeownership conveys more protection against hardship than do rent subsidies. Using the Survey ofContinue Reading

Report – Most College Students Don’t Earn a Degree in 4 Years

“In their latest report, Four-Year Myth, Complete College America and its Alliance of States reveal that the vast majority of full-time American college students do not graduate on time, costing them and their families tens of thousands of dollars in extra college-related expenses, as well as lost wages from delaying entry into the workforce. TheContinue Reading

High-Frequency Trading and Extreme Price Movements

Brogaard, Jonathan and Riordan, Ryan and Shkilko, Andriy and Sokolov, Konstantin, High-Frequency Trading and Extreme Price Movements (November 26, 2014). Available for download at SSRN: http://ssrn.com/abstract=2531122 “This paper examines the relation between high-frequency trading (HFT) and extreme price movements (jumps). Some market observers allege that HFT causes and exacerbates price jumps thus contributing to marketContinue Reading

International Journal of Central Banking

International Journal of Central Banking (IJCB), December 2014 issue – Cover and contents Monetary and Labor Interactions in a Monetary Union  by Vincenzo Cuciniello Financial Stability and Central Bank Governance by Michael Koetter, Kasper Roszbach and Giancarlo Spagnolo The Aggregate Demand Effects of Short- and Long-Term Interest Rates by Michael T. Kiley Introducing Funding Liquidity Risk in a MacroContinue Reading