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High inflation disproportionately hurts low-income households
Household survey results do not support Nobel laureate economist Paul Krugman's recent suggestion that low-income families “have actually been hurt less by inflation than families with higher incomes.”
January 10, 2023
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Decentralized finance proposed as alternative to traditional financial services
DeFi applications allow users to directly interact with each other to borrow, lend, insure and exchange digital assets without centralized intermediaries, such as banks and custodial exchanges.
January 03, 2023
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Blockchain technology aims to expand role of digital transactions on internet
While the resources devoted to blockchain technology development have increased dramatically the past few years, the technology’s ultimate success depends on whether blockchain protocols can interact with the current economic landscape and how that occurs.
December 20, 2022
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Southwest Economy, Third Quarter 2022
Big Federal Stimulus, Home-Value Spike Won’t Ease Next Slump
Ultra-low interest rates and a historic housing boom that aided state and local government operations are fading, suggesting Texas policymakers may encounter additional difficulties during the next downturn.
October 03, 2022
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Southwest Economy, Second Quarter 2022
Crypto Miners Eye Texas for Energy Abundance; Banks View Digital Entrée
Cryptocurrencies have existed for over 10 years. Since their launch, cryptocurrencies have grown in quantity and market capitalization. Because they rely on decentralized technology that is computationally complex, cryptocurrencies are significant energy consumers. Texas' power-generating abilities have captured the attention of cryptocurrencies as miners move to the state.
July 01, 2022
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Russia counters sanctions’ impact with currency controls, averts crisis (for now)
The Russian central bank responded to unprecedented sanctions with strict capital controls that have stabilized the value of its currency—the ruble.
May 31, 2022
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Asset Prices, Leverage and Portfolio Rebalancing Drive Global Capital Flows Cycle
The amount of leverage—borrowed funds relative to the value of underlying assets—increases for risky holdings during downturns, motivating their ultimate sale to achieve a more secure financial position. The opposite occurs during upswings, as risky assets gain favor.
November 30, 2021
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Don’t Look to the 2013 Tantrum for the Effect of Tapering on Emerging Markets
Many emerging markets have improved their external balance sheets since the volatility evidenced during the "taper tantrum" of 2013 and would be much less vulnerable to Federal Reserve tapering today.
August 10, 2021
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Emerging-Market Economies Face COVID-19 and a 'Sudden Stop' in Capital Flows
A rise in global risk at a time of investor risk aversion led to a rapid flight from emerging-market assets.
April 14, 2020
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Southwest Economy, First Quarter 2020
Mexico Seeks to Reduce Consumers' Longstanding Reliance on Cash
Unlike the U.S., where consumers opt to pay with debit and credit cards or via apps, Mexico and its large informal economy continue to rely on hard cash. A new digital payment platform from the nation’s central bank aims to reduce the role of currency.
April 06, 2020