News and Commentary
Michael Barr, Howell Jackson, and Margaret Tahyar opine in The Regulatory Review that the Main Street Lending Program and other Federal ex post facto COVID induced recession policies demonstrate the necessity of financial system buffers against downturn given the government’s status quo of risk assessment ineptitude.
Minneapolis and Boston Fed presidents’ statements on reassessing the Fed’s role in financial stability may be changing perceptions of the Fed put, writes Dion Rabouin for Axios.
Francisco Covas at the Bank Policy Institute presents challenges to climate change stress testing for banks including data gaps and a distant planning horizon.
Sarah Hamerling, Donald Morgan, and John Sporn of the NY Fed analyze reasons for commercial credit standard changes reported in the Senior Loan Officer Opinion Survey, finding bank capital and loan liquidity not as significant as economic outlook.
Victor Degorce and Eric Monnet assert Keynes’ paradox of thrift validated by an increase in precautionary savings following the 2008 financial crisis in a VoxEU column.
David Arseneau finds that optimal central bank transparency depends on the state of the credit cycle and its shocks in a Federal Reserve paper.