Central Bank’s Balance Sheet and the Rise of Reserves
The above figure shows the balance sheet of four major central banks from 2005 to 2015. Above the horizontal axis is the asset side of the balance sheet, below is the liability side. All...
Economic Policy Uncertainty in Turkey
The latest addition to the Economic Policy Uncertainty index (EPU). This time is on Turkey, the country who's economy is negatively impacted by policy uncertainty in 2018.
The repo spike is not liquidity crisis; it is a crisis for Fed’s floor...
The floor system needs a cap on top of it. The sooner the Fed realizes it, the better they will be prepared for the coming financial turmoil.
Secured and Unsecured Debt Over the Business Cycle
Filed this one under Does Debt have a role in Marco of the 21st Century?
Azariadis, Kaas, and Wen (2015) first decomposed total corporate debt into secured and unsecured debt to study the relationship between...
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...
Derivatives’s Credit Terms in Eurozone Tighten Further
The latest SESFOD shows that the credit terms offered to counterparties for both securities financing and OTC derivative transactions is further tightened.
ECB’s Praet on Eurozone’s Secular Stagnation
Peter Praet, Executive Board Member of the ECB:Central to this debate is whether the slow growth can be attributed to cyclical – and hence ultimately transitory – factors related to the financial crisis,...
Bank Equity and Banking Crises
In a recent study "Bank Equity and Banking Crises" by Matthew Baron (of Cornell University), Emil Verner (MIT Sloan), and Wei Xiong (Princeton University), the three economists developed a comprehensive database of bank equity prices and banking crises with a full-sample of 46 countries from 1870-2016. They try to understand the dynamic between bank equity decline and banking crises.
What Macroeconomists seems to agree with each others… according to Blanchard
After a round of hot debate on the problem of DSGE model and the trouble of macroeconomics initiated by Paul Romer, heavyweight macroeconomist Olivier Blanchard comment on the usefulness of DSGE model, again.[getty...
Integrating Psychology with Economics | Q&A with Hersh Shefrin & Shlomo Benartzi
This weekend is a big one for behavioral economics. This morning, Richard Thaler, laureate of The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 2017, has presented his prize lecture "Integrating economics with psychology" in The Royal Swedish Academy of Sciences. And this Sunday will be the Nobel Prize Award Ceremony, Prof. Thaler will finally the well-deserved Nobel prize.To celebrate this occasion, I am honored to share with you my interview with two of the best co-authors of Prof. Thaler --- Hersh Shefrin and Shlomo Benartzi.