Thursday, November 22, 2018

QE: A User’s Guide | #FurtherDiscussed

In a recent policy research, Joseph Gagnon of Peterson Institute for International Economics and Brian Sack of D.E. Shaw Group asked an important question: when the Federal Reserve implement QE in the next crisis, should they use it somewhat differently?

BIS’s latest hunt for Zombie (firms)

In the latest BIS Quarterly Review, researchers Ryan Banerjee and Boris Hofmann consolidated some of the earlier research to illustrate the problem of zombie firms. They argued that the rise of zombies predated the 2008 financial crisis, and has since been dragging down the productivity of the real economy.

Why hadn’t the Federal Reserve rescued Lehman Brothers ten years ago?

This week, the trio who was directly responsible for the decision to let Lehman fail – Bernanke, Tim Geithner (then New York Fed President), and Hank Paulson (then Treasury Secretary) – joined together at a panel held by Brookings Institution and spoke about the lessons they had learned from the crisis.

Aging, Output Per Capita and Secular Stagnation

Gauti B. Eggertsson, Manuel Lancastre, and Lawrence H. Summers explain in their paper "Aging, Output Per Capita and Secular Stagnation" the role of aging in the Secular Stagnation model.

100% Reserve System is coming? – The Swiss Sovereign Money Referendum

The Swiss sovereign-money referendum, also known as the Sovereign-Money Initiative, which aims to creates a safe and crisis-free, yet experimental, banking system in Switzerland will be held on 10th June.

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.

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".

Cochrane responds to Sumner’s discussion on inflation stabilization regimes

Nothing would make us more proud than seeing intelligent and informed people discuss the ideas we have put forth in the interview series. So it is our great honor to know that there is...

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...

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...