The Federal Reserve Bank of New York works to promote sound and well-functioning financial systems and markets through its provision of industry and payment services, advancement of infrastructure reform in key markets and training and educational support to international institutions.
The Outreach & Education function engages, empowers and educates the public in the Second District. Our outreach mission furthers the Bank’s commitment to the region by listening to the communities we serve and developing programs, analysis and sponsored conferences and clinics to help meet their needs. Our education mission aims to advance public knowledge about the Federal Reserve System and its role in the economy.
The bloggers examine the General Collateral Finance (GCF) Repo market, an interdealer market primarily using U.S. Treasury and agency securities as collateral, and consider whether recent regulatory changes have changed the behavior of securities broker-dealers.
By Nina Boyarchenko, Thomas Eisenbach, and Or Shachar
The U.S. dollar has appreciated around 12 percent since mid-2014, rising against almost all of our trading partners. The bloggers ask how the strength of the dollar affects U.S. GDP growth, focusing on the direct impact through the U.S. trade balance.
While Piketty is correct that the capital-output ratio will likely rise in the long run, and that capital and labor are highly substitutable, it is unlikely that the rise in the capital-output ratio should increase the share of output that ends up as capitalists’ net income.
First in a two-part series. Pinkovskiy describes the arguments that Thomas Piketty makes—to conclude that wealth inequality will rise and that global capital taxation is needed to stop it—and presents a critical discussion of these arguments. His analysis starts with Piketty’s most famous formula, r > g.
While its relative importance in the local economy pales in comparison with the other tech hubs, New York City has been creating tech jobs at a brisk pace and apparently benefitting from the broad trend toward urbanization, suggesting that it is quickly catching up as a leading tech hub.
Although the labor dispute at the West Coast ports began midyear 2014, major disruptions to international trade did not surface until 2015:Q1, when export and import growth through the West Coast ports fell short of growth through other ports by 14 to 20 percent. The bloggers examine how the labor dispute at the West Coast ports might have affected GDP growth.
By Mary Amiti, Tyler Bodine-Smith, Michele Cavallo, and Logan Lewis
Our 2015 survey finds U.S. households remain broadly optimistic about the housing market. Most renters report that they would rather own than rent if they had the necessary financial resources. As in last year’s survey, a majority believe that it would be difficult to obtain a mortgage, although responses suggest a slight easing in perceived credit access.
Students in recent years have been paying more to attend college and earning less upon graduation—trends that have raised questions about whether a college education remains a good investment. But research from economists Jaison Abel and Richard Deitz finds that the benefits of college still tend to outweigh the costs.
The authors estimate the elasticity of intertemporal substitution—the elasticity of expected consumption growth with respect to variation in the real interest rate—using subjective expectations from the New York Fed’s Survey of Consumer Expectations.
Richard K. Crump, Stefano Eusepi, Andrea Tambalotti, and Giorgio Topa, Staff Reports 734, July 2015
This paper exploits unique panel data derived from credit reports to provide the first comprehensive evidence at the individual level of how homeowners manage credit during periods of financial stress.
By Sewin Chan, Andrew Haughwout, Andrew Hayashi, and Wilbert van der Klaauw, Staff Reports 732, June 2015
The first round of Quantitative Easing (QE1), announced in November 2008, increased both U.S. mortgage activity and real spending but its effects were smaller in parts of the country with the largest employment declines.
By Martin Beraja, Andreas Fuster, Erik Hurst, and Joseph Vavra, Staff Reports 731, June 2015
This paper introduces the concept for a new monetary tool—segregated balance accounts (SBAs)—that could provide increased competition for deposits, reduce system-wide balance sheet costs, and improve the transmission of monetary policy by facilitating greater pass-through of interest on excess reserves. The authors explain how SBAs work, their advantages, and some potential risks.
By Rodney Garratt, Antoine Martin, James McAndrews, and Ed Nosal, Staff Reports 730, May 2015
This paper describes the Federal Reserve’s supervisory approach to large, complex financial companies and outlines how prudential supervisory activities are structured, staffed, and implemented on a day-to-day basis at the New York Fed. The goal is to generate insight for those not involved in supervision into what supervisors do and how they do it.
By Thomas Eisenbach, Andrew Haughwout, Beverly Hirtle, Anna Kovner, David Lucca, and Matthew Plosser, Staff Reports 729, May 2015
The authors perform an experiment—a stick intervention—which is perhaps the first one in a developing country setting that deals with the most direct and dominant form of firm informality, that is, registration with the tax authority with a direct link to the country's potential revenue base and thus public goods provision.
By Giacomo De Giorgi, Matthew Ploenzke, and Aminur Rahman, Staff Reports 728, May 2015