Globalization Institute Working Paper
Optimal Bailouts in Banking and Sovereign Crises
This paper finds that larger bailouts relax financial frictions and increase output but increase fiscal needs and default risk.
February 27, 2024
Economic Inclusion Fireside Chat: Michael Weber and Jeff Fuhrer on an inclusive economy
Michael Weber, an associate professor at the University of Chicago Booth School of Business, and Jeff Fuhrer, a fellow at the Brookings Institution and the Eastern Bank Foundation, provided insight into the importance of thinking about diverse communities in policymaking at the inaugural Economic Inclusion Seminar Series Fireside Chat.
February 12, 2024
Widening gap between rich and poor poses challenge to U.S.
Economist Jeffrey Fuhrer, a nonresident fellow at the Brookings Institution and former Boston Fed director of research, discusses the nation’s income and wealth gaps and offers proposals to close them. Fuhrer’s recently published book, “The Myth that Made Us,” explores inequalities in the nation’s economic system.
December 13, 2023
Fed credibility enhanced when public finds policymakers relatable
University of Chicago Booth School associate professor Michael Weber explains how audiences are especially receptive to monetary policy messaging delivered by Fed officials whose ethnic or gender background is similar to theirs and outlines the broader implications of such enhanced credibility.
December 06, 2023
Research Department Working Papers
Deposit Convexity, Monetary Policy and Financial Stability
Banks and researchers conventionally model the response of deposit interest rates to market interest rates as constant, implying that deposits have nearly constant duration. Contrary to this standard assumption, this paper shows empirically that the “beta” of deposit rates to market rates increases as market rates rise, causing the duration of deposits to fall.
October 10, 2023
Research Department Working Papers
High-Yield Debt Covenants and Their Real Effects
Contrary to the prevailing belief that incurrence covenants offer limited protection for creditors, this paper reveals a significant and sudden decline in investment upon triggering these covenants.
August 22, 2023
Labor market recovery and wage growth unequal across age groups after pandemic
The COVID-19 pandemic severely depressed U.S. labor force participation. Although the pandemic has eased, people ages 20–24 and those over 55 have been less likely to return to the workforce.
August 02, 2023
Research Department Working Papers
Financial Shocks in an Uncertain Economy
This paper focuses on some of the lessons we have learned over the years: (i) uncertainty and tail risk have cyclical variation; (ii) financial shocks can have a significant effect on macroeconomic outcomes; (iii) the impact of shocks is stronger in periods of high volatility.
July 07, 2023
EITC increases labor force participation among married Black mothers
Research has shown that the Earned Income Tax Credit, the largest of the U.S. antipoverty programs, boosts labor force participation among single mothers. It does not, in the aggregate, have the same effect on married mothers.
June 21, 2023
Globalization Institute Working Paper
On the Nexus of Monetary Policy and Financial Stability: Novel Asset Market Monitoring Tools for Building Economic Resilience and Mitigating Financial Risks
This paper argues that asset pricing bubbles are an important source of financial instabilities.
June 02, 2023