Capital Markets

Focus: practical understanding of the financial markets

Research Topics: credit market risks; links between financial markets and economic fundamentals; the performance and vulnerabilities of financial markets and institutions; technical aspects of pricing and trading securities and derivatives

“Two years ago, if someone had suggested that I’d be working in capital markets, I would have been skeptical. The dense jargon and gold-rush atmosphere of Wall Street were unappealing to me. But after working at the New York Fed for a year, capital markets means something different to me: studying risk, stability, economic growth, and investment allocation. As an RA in the Capital Markets group, I spend my days in a relaxed academic environment where my work is largely self-directed. I program and estimate models, create graphs, read, attend lectures, and give presentations. Best of all, I contribute my own ideas to the research that I do with economists”

Financial Intermediation

Focus: behavior and health of financial institutions, innovations in financial markets, and the development of appropriate supervisory tools and techniques

Research Topics: financial market innovations; banks and the business cycle; financial stability; risk management and measurement; regulatory capital requirements; design of financial systems, institutions, and contracts; restructuring and deregulation

“It’s exciting to be part of the new Financial Intermediation group. We recently expanded our focus to include not only banks but other financial institutions as well—from hedge funds to payday lenders. Our group is in a unique position to study the connection between financial markets and the real economy, and I’ve been involved in a broad range of projects that have exposed me to the economics of financial risk. I enjoy the friendly environment in Research, where I work closely with economists and other RAs on challenging policy issues and independent research projects. The experience and perspective that I have gained at the Fed are invaluable.”

International Research

Focus: international trade, finance, and macroeconomic issues related to developed and emerging market countries

Research Topics: financial and currency crises; capital flows and risk sharing among and within countries; foreign versus domestic banks in emerging markets; macroeconomic interdependence and international monetary policy transmission; exchange rate effects on prices, labor markets, and investment

“Working as an RA in the International Research group, I’ve had the opportunity to contribute to the current analysis of global economic issues and to assist economists in their academic research. It has been fascinating to monitor the international economy from the Fed’s perspective and learn how global economic conditions affect domestic markets. My work on academic research projects has allowed me to develop skills and experience that will be very useful in the future.”

Macroeconomic and Monetary Studies

Focus: monetary policy, national economic conditions, and macroeconomic research

Research Topics: monetary policy transmission; monetary policy and the zero bound; monetary policy and learning; sources of inflation dynamics; changes in the inflation-unemployment relationship; goods and services price inflation; methods of determining trend and cyclical productivity growth; the reduction in the volatility of economic fluctuations; changes in inventory dynamics and business cycles; the yield curve and recessions; forecasting using large macroeconomic panels; trends in labor force participation; analysis of recent housing price trends; tax changes and consumer spending

“You never know what each day may bring as an RA at the New York Fed. In the Macroeconomic and Monetary Studies group, you are at the forefront of one of the most exciting institutions the financial world. The Fed’s decisions affect virtually all aspects of our economy, and it is truly rewarding to be such an integral part of the policymaking process. My projects range from complex econometric analysis for academic research to in-depth investigations of policy issues with some of the best minds in economics. As an RA, you work in a uniquely flexible environment in which learning through collaboration, either with economists or other RAs, is the cornerstone of your experience.”

Microeconomic and Regional Studies

Focus: theoretical and applied areas of microeconomics and regional economics

Research Topics: sources of change in U.S. income distribution; household inflation expectations; empirical content of models with multiple equilibria; design of educational reforms and their impact on student performance; informational content of regional business surveys; land markets in U.S. metropolitan areas; fiscal interactions within U.S. metropolitan areas; regional infrastructure and development; development of regional activity indexes

“As an RA in Microeconomic and Regional Studies, I’ve had a valuable opportunity to work closely with both experienced economists and my peers in a challenging environment that encourages learning. I’m able to make a tangible contribution to the monetary policy process and seek out research that really interests me. Over the past year, I’ve worked with many different economists on a diverse set of projects, ranging from contributing to documents used to brief the Bank’s senior staff to using large micro datasets to analyze consumption volatility.”

Money and Payments Studies

Focus: research contributing to the formulation of Federal Reserve policy on domestic and global payments system issues

Research Topics: large-value payments systems; historical behavior in the use of money; risks in the operation of payments markets and systems; securities settlement systems across countries; wholesale payments services; payments system design; credit card use, consumption, and other economic variables; payments behavior and discount window policy

“The Money and Payments Studies group of the New York Fed analyzes the implementation of monetary policy and the performance of large-value payments systems. We maintain a unique database of interbank transactions, so our analysis is original and highly valued. Money and Payments Studies is
one of the smaller groups in Research, so the relationship between economists and RAs is particularly close. The
economists are supportive, and I’ve had numerous
opportunities to make significant contributions to academic research and policy projects.”