Economics

Standing Repo Facility (SRF) is a relatively young Federal Reserve facility. Formally established as a permanent tool in July 2021, SRF allows banks to obtain overnight liquidity with high-quality collaterals like Treasuries through a repurchase agreement. Most people may not be familiar with this "obscure" Fed tool, but it is possible that SRF will soon become one of the Fed's most important tools.

While GDP rebounded by 0.65% in Q3 (2.6% annualized), the expansion was driven almost entirely by a 2.2% drop in imports.

What if I tell you, behind the boring news headline, there is actually a wonkish story about how the Hong Kong central bank took advantage of the monetary easing by the Fed in the last 12 year and created a new set of policy options that it can now use to actively mange the inflows created by the new round Fed easing under the Great Lockdown.

In their working paper "A Skeptical View of the Impact of the Fed's Balance Sheet," economists David Greenlaw, James D. Hamilton, Ethan Harris, and Kenneth D. West challenge some earlier studies that concluded QEs have a significant economic impact. Their major argument is that those research used simple event studies to quantify the impact of QE.

Olivier Blanchard a list of things that macroeconomists normally agreed on and need no further discussions.

In recent months, the Global Economic Policy Uncertainty index has risen to a level much higher than periods around the 911 Terrorist Attack or the 2008 Financial Crisis, hence the conclusion that the economic policy is unprecedently uncertain now. But here is why you might not have to worry.

>Professor Olivier Blanchard further explained the role empirical research on DSGE models, how to teach undergraduates macro after the Great Recession, and his research on hysteresis.

Roger Farmer explains : Why central banks should consider stock market intervention in stabilizing the employment markets?

This is the second installment of our interview series "Where is the General Theory of the 21st Century?". In this second installment, we continue...

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.