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We show that Treasury bill auction procedures create classes of price-equivalent discount rates for bills with fewer … than seventy-two days to maturity. We argue that it is inefficient for market participants to bid at a discount rate that …
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interest income, rather than diversification benefits from noninterest income, which is quite volatile and has become more … correlated with net interest income. At the bank level, growth rates of net interest income and noninterest income have also …
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the Federal Reserve’s interest rate policy. In contrast, we show that the size of bank reserves has no effect on bank … lending in a frictionless model of the current banking system, in which interest is paid on reserves and there are no binding …
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Joint written testimony before the Congressional Oversight Panel, Washington, D.C.
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Global banks played a significant role in transmitting the 2007-09 financial crisis to emerging-market economies. We examine adverse liquidity shocks on main developed-country banking systems and their relationships to emerging markets across Europe, Asia, and Latin America, isolating loan...
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