Hysteresis – An Underrated Macroeconomics Question
Hysteresis is referred to the hypothesis that recessions may have permanent effects on the level of output relative to trend.
Macroprudential Policy – how does it differ from rate hikes?
Macroprudential policies, it is argued, are more targeted and can complement central bank’s use of interest rate policy.
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.
Economic benefit of asset market bubble
What the impact of asset price bubbles on US economic growth is.
Fed’s swap lines help easing Covid-era global dollar shortage
Countries with swap line arrangement with Federal Reserve, be it the standing ones or temporary, saw smaller increases in spread during the initial pandemic stress period.
Trump appointees will get Fed board majority when Powell is gone – and it...
Trump-appointed Fed governors will hold a board majority by the time Powell steps down as a governor. And that could matter a lot.
Hong Kong Linked Exchange Rate & HKD-USD interest rate differential
HKD tends to be on the strong side (closer to HKD 7.75 per USD) when the interest rate differential is positive (HIBOR > LIBOR).
When will Hong Kong’s Interest Rates Align With the US?
If you think the interest rate gap between Hong Kong and US is a market phenomenon, think again. HK Monetary Authority has a much bigger role than you think
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...
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.
