In John B. Calhoun’s early crowding experiments, rats weresupplied with everything they needed – except space. The resultwas a population boom, followed by such severe psychologicaldisruption that the animals died off to extinction. The take-homemessage was that crowding resulted in...

Chronicling the history of science and health popularisation in the United States, John C. Burnham sees a decline from the Victorian “men of science” to a situation in the mid-1980s where what passed as the popularisation of science consisted of little more than a litany of unrelated facts....

An optimizingmodel, with a flexible-price sector and a sticky-price sector, ispresented to analyze the effects of relative-price changes on inflation fluctuations. Therelative price of the flexible-price good represents a shift parameter of the NewKeynesian Phillips curve. The optimal monetary...

We describe a behavior of a central bank when its measures of current inflation and outputare subject to measurement errors, in a framework of optimizing models with nominal pricestickiness. In our model, a central bank sets the interest rate equal to its current estimate of theso-called...

The 1990s were characterized by substantial financial sectorconsolidation across a large number of industrializedcountries...

The global financial crisis that began in mid-2007 has renewedconcerns about financial instability and focused attention onthe fundamental role of central banks in preventing andmanaging systemic crises. In response to the turmoil, centralbanks have made extensive use of both new and existing...

In this paper, we assess the effects of changes to the primarycredit facility since August 2007 by performing out-of-samplesimulations based on a model developed by Artuç andDemiralp (2008). Our results are highly consistent with thepredictions of our 2008 study—that is, the revised...

[...]This paper addresses how central banks can resuscitatelending chains by providing information that reduces uncertainty about participants along the chains. This action has been taken before: the Bank Holiday of 1933, declared byPresident Franklin Delano Roosevelt, resolved uncertaintyabout...

While systemic risk—the risk of wholesale failure of banksand other financial institutions—is generally consideredto be the primary reason for supervision and regulation of thebanking industry, almost all regulatory rules treat such risk inisolation. In particular, they do not account for...