News and Commentary Niskanen's very own Samuel Hammond critiques the report from Senator Marco Rubio on perils of financialization in the U.S. economy. While Hammond agrees that large companies functioning [...]
We propose a contingent clawback bond (COCLA) as an alternative source of contingent convertible capital (CoCo). We develop a utility maximization model in which a bank manager faces the following [...]
Over the last decade, macroprudential policy has made important advances and become more widely used. We have a better understanding of its goals and tools, and are accumulating evidence that [...]
News and Commentary Lyndsey Jefferson of Chatham House interviewed Matthew Oxenford on the dangers of financialization. We've gone past the tipping point where an increase in the size of the [...]
We investigate the effect of house prices on household borrowing using administrative mortgage data from the United Kingdom and a new empirical approach. The data contain household-level information on house [...]
This paper shows that a macro model with segmented financial markets can generate sizable movements in housing prices in response to changes in credit conditions. We establish theoretically that reductions [...]
Liquidity shocks transmitted through interbank connections contributed to bank distress during the Great Depression. New data on interbank connections reveal that banks were much more likely to close when their [...]
News and Commentary In his Wall Street Journal op-ed (posted here on the Brookings website), William Gale makes a damning case against the mortgage interest deduction. Similar countries without an MID have [...]
We investigate how communication within banks affects small business lending. Using travel time between a bank’s headquarters and its branches to proxy for the costs of communicating soft information, we [...]
This paper seeks to refine our understanding of how refinancing a mortgage affects household outcomes. This issue has attracted particular attention in the wake of the Great Recession, however, there [...]