The Rise of Non-Bank US Dollar Credit Continues
The latest BIS global liquidity indicators showed that the share of Non-bank USD denominated credit continued its rising trend.
The Non‐Bank Credit Cycle
In a new working paper "The Non‐Bank Credit Cycle", researchers Esti Kemp, René van Stralen, Alexandros Vardoulakis, and Peter Wierts tried to look into the cyclical properties of non‐bank credit and its relevance for financial stability.
What is Payment on Reserves Process?
The payment on reserve process proposed by Robert Hall and Ricardo Reis is a way of remunerating reserves which would give the central bank better control over the price level.The basic intuition is that...
#WITGT21 Paragraph of the Day
By Simon Wren-Lewis:What is hardly ever said, so I make no apologies for doing so once more, is that macroeconomic theory has in some ways ‘had a good crisis’. Basic Keynesian macroeconomic theory says...
Why Yellen should stay as Fed Governor? | Q&A with Conti-Brown
When President Trump decided to nominate Jay Powell instead of Janet Yellen to be the next Federal Reserve Chair, my mind was full of interesting questions on how this decision impacts the institution of the Fed. In my opinion, one of the best experts to answer my question would be Peter Conti-Brown, assistant professor at The Wharton School of the University of Pennsylvania and author of one of the best book about the institution of Fed --- "The Power and Independence of the Federal Reserve".
The Fed’s Interest Rate Policy Regime – Corridor System or Floor System
The Fed has changed it interest rate policy regime since 2008, from the so-called Corridor system, to the Floor system it is using right now. What is the different?
Rajan on what “New Rule for Monetary Game” actually means
Raghuram Rajan, former Governer of Reserve Bank of India and now Professor of Finance at Chicago Booth, visited Hong Kong and gave a keynote speech in Asian Financial Forum last week. I am lucky...
Why the Fed announces “not-QE” Treasuries purchase program?
Federal Reserve announced yesterday that it will start purchasing Treasury bills from Oct 15 (Tuesday) until at least the second quarter of next year.
What is Hysteresis?
Hysteresis is referred to the hypothesis that recessions may have permanent effects on the level of output relative to trend.
Why Does Credit Growth Crowd Out Real Economic Growth?
The faster the credit growth, the worse it is for real growth (output per worker). This is what Stephen G. Cecchetti and Enisse Kharroubi want to explain in their NBER working paper "Why Does Credit Growth Crowd Out Real Economic Growth?"