Showing 1 - 10 of 16
Banks have historically provided mutual insurance against asset risk, where the insurance arrangement itself was characterized by limited enforcement. This paper shows that a non-trivial interaction between asset and liquidity risk plays a crucial role in shaping optimal banking arrangements in...
Persistent link: https://www.econbiz.de/10005526380
While trading activity is generally thought to play a central role in the self-stabilizing behavior of markets, the risks in trading on occasion can affect market liquidity and heighten asset price volatility. This article examines empirical evidence on the limits of arbitrage in the interest...
Persistent link: https://www.econbiz.de/10005372883
Remarks at the Securities Industry and Financial Markets Association and Pension Real Estate Association's Public-Private Investment Program Summit, New York City.
Persistent link: https://www.econbiz.de/10010724933
Remarks at the National Association for Business Economics Policy Conference, Arlington, Virginia
Persistent link: https://www.econbiz.de/10010724972
Remarks by Brian P. Sack before the Money Marketeers of New York University, New York City.
Persistent link: https://www.econbiz.de/10010725044
The potential advantages from the introduction of Treasury inflation-protected securities (TIPS) in 1997 have not been fully realized, mainly because TIPS are less liquid than nominal Treasury securities. The lack of liquidity is thought to adversely affect TIPS prices relative to prices of...
Persistent link: https://www.econbiz.de/10011027142
The U.S. dollar clearing and settlement system received little attention during the recent financial crisis, mainly because it performed reliably, processing record volumes and values of trades made in stressed financial markets. This article shows how Federal Reserve policy measures aimed at...
Persistent link: https://www.econbiz.de/10011027151
Persistent link: https://www.econbiz.de/10010723773
In responding to the severity and broad scope of the financial crisis that began in 2007, the Federal Reserve has made aggressive use of both traditional monetary policy instruments and innovative tools in an effort to provide liquidity. In this paper, I examine the Fed's actions in light of the...
Persistent link: https://www.econbiz.de/10005078435
Persistent link: https://www.econbiz.de/10005717085