The Federal Reserve currently conducts open market operations primarily in Treasury securities. It has not always done so. In its earliest years, the Fed conducted open market operations primarily in private securities, such as bankers' acceptances. The Fed's choice of instruments was based both...

Exogenous shocks to monetary policy strongly affect short-term interest rates, but have little or no effect on longer-term interest rates.

This article examines the growing dependence of global financial markets on time-critical liquidity in managing settlement risk and its implications for financial regulation.

Systemic crises, such as the recent Asian crisis, may be due to an inability of individual to optimally coordinate their investment strategies.

This article examines the growing dependence of global financial markets on time-critical liquidity in managing settlement risk and its implications for financial regulation.