Focus In response to the 2008-09 crisis, central banks aggressively cut monetary policy rates and implemented a broad set of unconventional monetary policy measures. We propose a simple framework to analyse the optimal sequencing of standard policy an...
Bert Loudis and Ben Ranish | We find that that the Current Expected Credit Loss (CECL) standard would slightly dampen fluctuations in bank lending over the economic cycle. In particular, if the CECL standard had always been in place, we estimate that l...
Garth Baughman and Francesca Carapella | This note presents a simplifed version of the model of voluntary reserve targets (VRT) developed in Baughman and Carapella (forthcoming), with a Walrasian interbank market. First, the model makes transparent the...
Yang-Ho Park | This paper introduces a new model-free approach to measuring the expectation of market variance using VIX derivatives. This approach shows that VIX derivatives carry different information about future variance than S&P 500 (SPX) opti...
Gaetano Antinolfi, Francesca Carapella, and Francesco Carli | This paper adopts a mechanism design approach to study optimal clearing arrangements for bilateral financial contracts in which an assessment of counterparty risk is crucial for efficiency. ...
Aditya Aladangady, Shifrah Aron-Dine, Wendy Dunn, Laura Feiveson, Paul Lengermann, and Claudia Sahm | Access to timely information on consumer spending is important to economic policymakers. The Census Bureau's monthly retail trade survey is a primary ...
Carlos Ramírez | I study the problem of regulating a network of interdependent financial institutions that is prone to contagion when there is uncertainty regarding its precise structure. I show that such uncertainty reduces the scope for welfar...
Focus This paper investigates how the specific characteristics of Peruvian banks can have different effects on the supply of loans, the bank lending channel and the impact of variation in metal prices. The analysis is made for both the domestic and fo...
Focus This paper studies how bank characteristics affect the credit supply in Mexico. We analyse how these features influence banks' response to shocks. We compare the conduct of domestic banks to that of foreign banks' subsidiaries active in Mexico. ...
Focus This paper asks how the expansion of Colombian banks overseas affects the strength of the credit channel in Colombia (i.e., how monetary policy influences bank balance sheets). We investigate the effect of Colombian banks' acquisitions in foreig...