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.
Laws passed in the late 1800s required the U.S. government to purchase large quantities of silver and issue certificates backing their value. Cohen chronicles the history and the end of silver certificates, which in 1968 resulted in mob scenes at the assay offices.
First of a two-part series. The 2005 Bankruptcy Abuse Prevention and Consumer Protection Act resulted in a large and permanent reduction in bankruptcy filings. In this post, the bloggers study the mechanism behind this drop and the consequences for households.
By Stefania Albanesi, Jaromir Nosal, Zachary Bleemer, and Matthew Ploenzke
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.
Duarte and Rosa analyze twenty different models of the equity risk premium (ERP) and find that the current level of the ERP is consistent with a bond-driven ERP: expected excess stock returns are elevated not because stocks are expected to have high returns, but because bond yields are exceptionally low.
By Fernando Duarte and Carlo Rosa, Staff Reports 714, February 2015
The authors consider the structure of mortgage finance in the United States and its role in shaping patterns of homeownership, the nature of the housing stock, and the organization of residential activity.
By Sewin Chan, Andrew Haughwout, and Joseph Tracy, Staff Reports 713, February 2015
This study considers the usefulness of an overnight reverse repurchase agreement facility as one means of maintaining control over the federal funds rate and other short-term rates during the normalization of monetary policy. The authors assess the possible secondary effects of the facility—both positive and negative—and outline some design features that could limit any adverse consequences.
By Joshua Frost, Lorie Logan, Antoine Martin, Patrick McCabe, Fabio Natalucci, and Julie Remache, Staff Reports 712, February 2015
Eisenbach and Schmalz show that horizon-dependent risk aversion preferences (“anxiety”) supply a rationale for overconfident beliefs, wherein selective information processing is used as a tool to accomplish self-delusion.
By Thomas M. Eisenbach and Martin C. Schmalz, Staff Reports 711, February 2015