Stablecoins can support low-cost, instantaneous payment rails that are interoperable and programmable. This can increase competition in financial services, reduce the cost of accepting digital payments for small and medium businesses, and foster greater financial inclusion among segments that...

The US plays a key role in the global financial system. At the same time, its payments system lags behind the global frontier. The primary task of any payment system is to move value in a low cost, convenient, and timely manner. Across all of these dimensions, the US experiences substantial...

Using data from 43 US cities, Correia, Luck, and Verner (2020) finds that the 1918 Flu pandemic decreased economic growth, but that Non Pharmaceutical Interventions (NPIs) mitigated its adverse economic effects. Their starting point is a striking positive correlation between 1914-1919 economic...

We document that the relationship between currencies and risk premia has changed dramatically since the financial crisis: the covariance of equity returns and exchange rates sharply increased after the crisis. Since 2008, 21 per cent of the variation in monthly currency appreciations can be...

This paper explores the case for gradually instituting changes necessary to implement unconstrained negative interest rate policy as a long-term solution to the effective lower bound on policy interest rates. If small depositors can be excluded, then passthrough of negative rates to large and...

It is surprisingly difficult to find economic variables that strongly co-move with exchange rates, a phenomenon codified in a large literature on “exchange rate disconnect.” We demonstrate that a variety of common proxies for global risk appetite, which did not co-move with exchange rates...

It is surprisingly difficult to find economic variables that strongly co-move with exchange rates, a phenomenon codified in a large literature on “exchange rate disconnect.” We demonstrate that a variety of common proxies for global risk appetite, which did not co-move with exchange rates...

It is surprisingly difficult to find economic variables that strongly co-move with exchange rates, a phenomenon codified in a large literature on ``exchange rate disconnect.'' We demonstrate that a variety of common proxies for global risk appetite, which did not co-move with exchange rates...

It is surprisingly difficult to find economic variables that strongly co-move with exchange rates, a phenomenon codified in a large literature on "exchange rate disconnect." We demonstrate that a variety of common proxies for global risk appetite, which did not co-move with exchange rates prior...