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The Outreach & Education function engages, empowers and educates the public in the Second District. Our outreach mission furthers the Bank’s commitment to the region by listening to the communities we serve and developing programs, analysis and sponsored conferences and clinics to help meet their needs. Our education mission aims to advance public knowledge about the Federal Reserve System and its role in the economy.
Since the financial crisis, major U.S. banking institutions have increased their capital ratios in response to tighter capital requirements. This post estimates market-making returns in equity and corporate bond markets to assess the effects of the regulations.
By Tobias Adrian, Michael Fleming, Or Shachar, Daniel Stackman, Erik Vogt
The bloggers contend that recent changes in liquidity conditions in the Treasury and equity markets may best be described in terms of heightened changes in liquidity risk. They suggest a measure that shows that liquidity risk has increased and discuss some factors behind its rise.
By Tobias Adrian, Michael Fleming, Daniel Stackman, and Erik Vogt
Recent commentary suggests concern among market participants about corporate bond market liquidity, even as evidence suggests that liquidity remains ample. In this post, the bloggers propose a measure of liquidity risk in the corporate bond market, and analyze its evolution over time.
By Tobias Adrian, Michael Fleming, Or Shachar, and Erik Vogt
In the corporate debt market, dealer positions, which are considered essential to good liquidity, have declined, even as issuance and outstanding debt have increased. To measure market liquidity in the corporate bond market, the bloggers review both price- and quantity-based liquidity measures for the market, including trading volume, trade size, bid-ask spreads, and price impact.
By Tobias Adrian, Michael Fleming, Or Shachar, and Erik Vogt
First in a seven-part series. This week, Liberty Street Economics will publish a second series of six posts that shed light on the evolving nature of market liquidity. The bloggers examine various measures of liquidity in the corporate bond market; measure liquidity risk in the corporate bond, Treasury, and equity markets; examine the changing role of dealers; and examine the potential for increased uncertainty about the level of liquidity in markets where high-frequency trading is common.
By Tobias Adrian, Michael Fleming, and Ernst Schaumburg
In this post, the Bank’s Research director introduces a new option for keeping up with our economists’ work—the Economic Research Tracker for Apple iPad. We invite readers to download the app and begin exploring bylines and topics of interest.
The New York Fed’s Research Group is looking for talented individuals with a background in economics, mathematics, or statistics. We are now accepting applications for the RA position with a summer 2016 start date. Download our
informational app from Apple's App Store.
In the September Survey, manufacturers and service firms were asked how much their overall selling prices had changed over the past year and how much they expected their prices to rise or fall in the year ahead.
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.
Pinkovskiy considers changes in labor markets across U.S. states and counties subsequent to the enactment of the Affordable Care Act (ACA) in 2010 and its implementation in 2014. He finds that counties with large fractions of uninsured before the enactment or the implementation of the ACA experienced more rapid employment and salary growth than did counties with smaller fractions of people uninsured, after both the enactment and implementation of the ACA.
By Maxim Pinkovskiy, Staff Reports 746, October 2015
Short-term nominal interest rates in many developed economies—including Japan, the United States, and Europe—have by now been against their effective zero lower bound (ZLB) for several years, with liftoff from the ZLB unlikely in the near future. In this paper, the authors put forth a new class of interest rate rules for an economy in a liquidity trap (that is, a time in which the natural rate of interest is negative).
By Fernando Duarte and Anna Zabai, Staff Reports 745, October 2015
As the annual supervisory stress test processes have evolved, the Federal Reserve has provided increasingly detailed public disclosures about the tests’ results and implications. This paper evaluates how the publication of this official sector analysis affects private investors’ assessments of the tested bank holding companies’ values.
By Mark Flannery, Beverly Hirtle, and Anna Kovner, Staff Reports 744, October 2015
The authors document empirically that banks base their balance sheet management on book equity and book leverage. They also present evidence that balance sheet management of intermediaries is linked to market risk, which directly affects firms’ ability to take on leverage.
By Tobias Adrian, Nina Boyarchenko, and Hyun Song Shin, Staff Reports 743, October 2015
This paper presents a macroprudential tabletop exercise designed to provide Federal Reserve Bank Presidents with a plausible, albeit hypothetical, macro-financial scenario that would lend itself to macroprudential considerations. It describes the hypothetical macro-financial scenario, the set of macroprudential tools, their transmission mechanism, as well as an account of the participants’ assessment of vulnerabilities and potential policy actions under the scenario.
By Tobias Adrian, Patrick de Fontnouvelle, Emily Yang, and Andrei Zlate, Staff Reports 742, October 2015
The authors measure the dynamic response of real prices, sales, production, and inventories to changes in real interest rates for a particular durable goods market—new cars and light trucks. This is an important issue because the market for durable goods is a key channel through which monetary policy affects the real economy.
By Adam Copeland, George Hall, and Louis Maccini, Staff Reports 741, September 2015