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Financial stability

 

  • Research Department Working Papers

    Technology Providers and Financial Stability: Overview of Risks and Regulatory Frameworks

    Technology-focused Third-Party Service Providers (TPSPs) have become important players in the operations of financial institutions and the financial markets. This paper summarizes micro- and macro-prudential regulatory frameworks in place to address risks that TPSPs pose to the financial system.

  • Research Department Working Papers

    Bubbling Up? What Consumer Expectations Reveal About U.S. Housing Market Exuberance

    This paper investigates the presence of speculative bubbles in the U.S. housing market after the global financial crisis. Unlike standard approaches that rely on observed economic fundamentals, the method used in this paper leverages subjective price expectations from the University of Michigan Survey of Consumers to test for exuberance without imposing a specific model of intrinsic housing values.

  • Research Department Working Papers

    Asset Manager Commonality and Portfolio Similarity

    Asset managers are increasingly influential in financial markets. This paper uses new regulatory as well as manually collected data on asset managers of life insurers, the largest institutional investors of corporate bonds, and finds that insurers with the same asset managers have more similar portfolios and trades.

  • Research Department Working Papers

    The Macroeconomics of Labor, Credit and Financial Market Imperfections

    An increasing share of corporate loans, a critical source of firm credit, are sold off banks’ balance sheets and actively traded in a secondary over-the-counter market. This paper develops a microfounded equilibrium search-theoretic model with labor, credit and financial markets to explore how this secondary loan market affects the real economy.

  • Moving up, falling back or staying still: How income mobility in Texas differs by race, ethnicity

    This article analyzes how different demographic groups can climb the income ladder and move into higher-income groups.

  • Income disparities between white and Hispanic and Black Texans seen from 2005 to 2019

    In the United States, a great deal of research has documented income disparities across racial and ethnic groups over time. If left unaddressed, those disparities could act as a headwind to future economic growth, especially given the country’s increasingly diverse population.

  • 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.

  • 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.

  • 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.

  • 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.