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.
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The bloggers present a theory that relies on a novel way of thinking about a liquidity requirement—an instrument that, by making banks better able to withstand the initial phases of a crisis, gives the lender of last resort time to ascertain the potential implications of an early, disorderly liquidation of a bank in trouble.
The authors build a model of a financial intermediary, in the tradition of Diamond and Dybvig (1983), and show that allowing the intermediary to impose redemption fees or gates in a crisis—a form of suspension of convertibility—can lead to preemptive runs.
ByMarco Cipriani, Antoine Martin, Patrick McCabe, and Bruno M. Parigi , Staff Reports, Number 670, April 2014
The authors propose a way to assess whether national accounts or survey means perform better in capturing differences in income across countries and over time, creating a new measure of income per capita that is an optimal combination of national accounts and survey means data.
By Maxim Pinkovskiy and Xavier Sala-i-Martin, Staff Reports, Number 669, April 2014
Student loans have come to play an increasingly important role in financing higher education, but they are not well understood. The authors bring a new data set to bear on this important issue and present a brief analysis of historical and current levels of student debt and how that debt is performing.
Meta Brown, Andrew Haughwout, Donghoon Lee, Joelle Scally, and Wilbert van der Klaauw, Staff Reports, Number 668, April 2014