[...]This article examines the origins and early development ofthe Federal Reserve’s book-entry system—the system mostclosely associated with the elimination of definitive, orcertificated, Treasury securities. We suggest that the Fed’ssystem was the product of three important factors: the...

[...]This article is organized as follows. In the next section, wediscuss the basics of deferred settlement systems, and in Section 3we describe the systems used in our simulations. In Section 4,we describe the performance metrics and results of the basicsimulations, and in Section 5 we conduct...

[...]In this article, we describe and give an updated analysis ofour approach to estimating the cost of equity capital used bythe Federal Reserve System. The article is structured as follows.We begin with a review of the basic valuation models used toestimate the cost of equity capital. In...

[...]The overall conclusion drawn from the research presented isthat monetary policy appears to have less of an impact on realactivity than it once had—but the cause of that change remainsan open issue. The conference papers explored threehypotheses en route to that finding. First, the...

[...]It seems clear that the Federal Reserve’s policy behavior overthe 1979:4-1982:3 period (which I refer to as the “earlyVolcker” period) differed from that of other periods.1 Thestated policy of the Federal Reserve during this period was tofocus more on monetary aggregates than it had...

Lack of transparency in securitization transactions significantly contributed to thesevere financial crisis of 2007–2009. To increase transparency we—based on arecent idea by Markowitz (2009)—propose an incentive compatible mechanismfor future securitization transactions: financial claims...

Evidence on the interdependency between monetary policy and the state of thebanking system is scarce. We suggest an integrated micro-macro approach with twocore virtues. First, we measure the probability of bank distress directly at the banklevel. Second, we integrate a microeconomic hazard...

This paper provides an overview of the complex conceptual and practical challenges thatemerging market economies face as they attempt to reform their frameworks for financialregulation. These economies are striving to balance the quest for financial stability with theimperatives of financial...

Empirical evidence on whether the euro area monetary transmission process has changed is, at best, mixed. We argue that this inconclusiveness is likely to be due to the fact that existing empirical studies concentrate on the effects of a particular development on a specific transmission channel....

We examine the coexistence of banks and financial markets, studyinga credit market where the qualities of investment projects are notobservable and the investment decisions of entrepreneurs are not contractible...