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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
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District banks meet challenging times from position of strength
Texas banks confront an increasingly challenging operating environment, as the state’s usually strong economic growth is predicted to slow later this year and the Federal Reserve’s rapidly rising interest rate environment pressures some institutions’ profitability.
June 01, 2023
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The connection between banking and sovereign debt crises
Dallas Fed economist Sewon Hur examines how sovereign debt crises can amplify banking problems.
May 30, 2023
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Surveys
Banking Conditions Survey
Loan demand declined for the sixth period in a row amid further loan pricing increases and worsening general business activity.
May 15, 2023
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Research Department Working Papers
Debt Maturity and Commitment on Firm Policies
If firms can issue debt only at discrete dates, debt maturity is an effective device against the commitment problem on debt and investment policies. With shorter maturities, debt dynamics are less persistent and more valuable because upward leverage adjustments are faster and long-run leverage lower.
April 19, 2023
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Interest rate volatility contributed to higher mortgage rates in 2022
The Federal Reserve aggressively tightened monetary policy in 2022, responding to high and persistent inflation. The resulting borrowing cost increase for households and firms was generally anticipated. However, fixed-rate mortgage interest rates were especially sensitive to the policy regime change.
April 04, 2023
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Surveys
Banking Conditions Survey
Loan demand declined for the fifth period in a row as bankers in the March survey reported worsening business activity.
April 03, 2023
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Surveys
Banking Conditions Survey
Loan demand declined for the fourth period in a row, with more than half of bankers reporting a decrease over the past six weeks.
February 21, 2023
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Dallas Fed, Latin American central banks explore financial stability risks
The COVID-19 pandemic, recent monetary tightening and a strengthening U.S. dollar were the themes explored during a recent conference organized by the Federal Reserve Bank of Dallas and the Center for Latin American Monetary Studies (CEMLA) and held at CEMLA’s Mexico City headquarters.
February 16, 2023
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Research Department Working Papers
Financial Technology and the Transmission of Monetary Policy: The Role of Social Networks
This paper establishes that social networks play a key role in consumers’ adoption of FinTech lending, which amplifies the effects of a monetary stimulus.
February 14, 2023