The Federal Reserve Bank of New York works to promote sound and well-functioning financial systems and markets through its provision of industry and payment services, advancement of infrastructure reform in key markets and training and educational support to international institutions.
The Outreach and Education function engages, empowers and educates the Second District communities that the Bank serves, especially civic leaders, students, educators, small business owners, policymakers and the general public. It furthers the Bank's commitment to the region by listening to the communities we serve and leveraging our unique attributes to positively impact school and university programs, as well as analysis and research.
Speculation in railway shares, a massive harvest failure in England and Ireland, surging food imports, drained gold reserves, tightening monetary policy, falling food prices, and commodity speculators caught short . . . all led up to a crisis, one of the worst in British history. In this edition of Crisis Chronicles, the bloggers cover the Commercial Crisis of 1847.
The typical buyout (for example, the “leveraged buyout” or LBO) is primarily funded by debt, so analysis of buyout fluctuations has focused on the availability and cost of debt financing. However, the bloggers find that the overall cost of capital, rather than debt alone, is the primary driver of buyout activity.
By Valentin Haddad, Erik Loualiche, and Matthew Plosser
From the 1850s to the 1910s, stereoscopic viewers were used for home entertainment and functioned as a way for people to travel vicariously, or as an aid to the study of history and other cultures. Farber tells us how to find—or make—our own viewer and where to find images that we can then view stereoscopically.
Our 2015 survey finds U.S. households remain broadly optimistic about the housing market. Most renters report that they would rather own than rent if they had the necessary financial resources. As in last year’s survey, a majority believe that it would be difficult to obtain a mortgage, although responses suggest a slight easing in perceived credit access.
Students in recent years have been paying more to attend college and earning less upon graduation—trends that have raised questions about whether a college education remains a good investment. But research from economists Jaison Abel and Richard Deitz finds that the benefits of college still tend to outweigh the costs.
This paper exploits unique panel data derived from credit reports to provide the first comprehensive evidence at the individual level of how homeowners manage credit during periods of financial stress.
By Sewin Chan, Andrew Haughwout, Andrew Hayashi, and Wilbert van der Klaauw, Staff Reports 732, June 2015
The first round of Quantitative Easing (QE1), announced in November 2008, increased both U.S. mortgage activity and real spending but its effects were smaller in parts of the country with the largest employment declines.
By Martin Beraja, Andreas Fuster, Erik Hurst, and Joseph Vavra, Staff Reports 731, June 2015
This paper introduces the concept for a new monetary tool—segregated balance accounts (SBAs)—that could provide increased competition for deposits, reduce system-wide balance sheet costs, and improve the transmission of monetary policy by facilitating greater pass-through of interest on excess reserves. The authors explain how SBAs work, their advantages, and some potential risks.
By Rodney Garratt, Antoine Martin, James McAndrews, and Ed Nosal, Staff Reports 730, May 2015
This paper describes the Federal Reserve’s supervisory approach to large, complex financial companies and outlines how prudential supervisory activities are structured, staffed, and implemented on a day-to-day basis at the New York Fed. The goal is to generate insight for those not involved in supervision into what supervisors do and how they do it.
By Thomas Eisenbach, Andrew Haughwout, Beverly Hirtle, Anna Kovner, David Lucca, and Matthew Plosser, Staff Reports 729, May 2015
The authors perform an experiment—a stick intervention—which is perhaps the first one in a developing country setting that deals with the most direct and dominant form of firm informality, that is, registration with the tax authority with a direct link to the country's potential revenue base and thus public goods provision.
By Giacomo De Giorgi, Matthew Ploenzke, and Aminur Rahman, Staff Reports 728, May 2015
To isolate the component of demand that arises solely from peer benchmarking, the authors study trading behavior by Colombian pension fund managers in the presence of a peer-based under-performance penalty known as the Minimum Return Guarantee.
By Sushant Acharya and Alvaro Pedraza, Staff Reports 727, May 2015