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Central Bank Purchases of Private Assets

Williamson, Stephen D. - Federal Reserve Bank of St. Louis - 2014

A model is constructed in which consumers and banks have incentives to fake the quality of collateral. Conventional monetary easing can exacerbate these problems, in that the mispresentation of collateral becomes more profitable, thus increasing haircuts and interest rate differentials. Central...

Persistent link: https://www.econbiz.de/10010938568

The 2009 recovery act: stimulus at the extensive and intensive labor margins

Dupor, Bill; Mehkari, M. Saif - Federal Reserve Bank of St. Louis - 2014

This paper (i) estimates the local effects of government stimulus spending on labor market outcomes and (ii) shows how these effects can be obtained from a firm's optimal policy in the presence of costs to hiring workers. We analyze the American Recovery and Reinvestment Act of 2009 (Recovery...

Persistent link: https://www.econbiz.de/10010890136

Fiscal Policy Spillovers: Points of Employment to Places of Residence

Dupor, Bill; McCrory, Peter B. - Federal Reserve Bank of St. Louis - 2014

In this paper, we study the effects of interregional spillovers from the government spending component of the American Recovery and Reinvestment Act of 2009 (the Recovery Act). Using cross-county Census Journey to Work commuting data, we cluster U.S. counties into local labor markets, each of...

Persistent link: https://www.econbiz.de/10010942506

Navigating constraints: the evolution of Federal Reserve monetary policy, 1935-59

Wheelock, David; Carlson, Mark A. - Federal Reserve Bank of St. Louis - 2014

The 1950s are often pointed to as a decade in which the Federal Reserve operated a particularly successful monetary policy. The present paper examines the evolution of Federal Reserve monetary policy from the mid-1930s through the 1950s in an effort to understand better the apparent success of...

Persistent link: https://www.econbiz.de/10010784192

Mortgages and monetary policy

Garriga, Carlos; Kydland, Finn E.; Šustek, Roman - Federal Reserve Bank of St. Louis - 2013

Mortgage loans are a striking example of a persistent nominal rigidity. As a result, under incomplete markets, monetary policy affects decisions through the cost of new mortgage borrowing and the value of payments on outstanding debt. Observed debt levels and payment to income ratios suggest the...

Persistent link: https://www.econbiz.de/10011027315

Withstanding great recession like China

Wen, 文一; Wu, Jing - Federal Reserve Bank of St. Louis - 2014

Persistent link: https://www.econbiz.de/10010748402

Forecasting macro variables with a Qual VAR business cycle turning point index

Dueker, Michael J.; Wesche, Katrin - Federal Reserve Bank of St. Louis - 2005

One criticism of VAR forecasting is that macroeconomic variables tend not to behave as linear functions of their own … past around business cycle turning points. This article investigates the methods and efficacy of forecasting with a VAR …. ; (earlier title: Forecasting output with information from business cycle turning points: a qualitative variable VAR) …

Persistent link: https://www.econbiz.de/10005352833

Are government spending multipliers greater during periods of slack? evidence from 20th century historical data

Owyang, Michael T.; Ramey, Valerie A.; Zubairy, Sarah - Federal Reserve Bank of St. Louis - 2013

A key question that has arisen during recent debates is whether government spending multipliers are larger during times when resources are idle. This paper seeks to shed light on this question by analyzing new quarterly historical data covering multiple large wars and depressions in the U.S. and...

Persistent link: https://www.econbiz.de/10011027317

The nominal facts and the October 1979 policy change

Gavin, William T.; Kydland, Finn E. - Federal Reserve Bank of St. Louis - 2000

Gavin and Kydland (1999) calculated the cyclical properties of money and prices for the periods before and after the October 1979 policy change. In this article, we extend that work by adding four more years of data and including a study of nominal interest rates and inflation. The adoption of a...

Persistent link: https://www.econbiz.de/10005707712

Is the response of output to monetary policy asymmetric? evidence from a regime-switching coefficients model

Lo, Ming Chien; Piger, Jeremy - Federal Reserve Bank of St. Louis - 2003

This paper investigates regime switching in the response of U.S. output to a monetary policy action. We find substantial, statistically significant, time variation in this response, and that this time variation corresponds to "high response" and "low response" regimes. We then investigate...

Persistent link: https://www.econbiz.de/10005352937