Thus it is here that economic history can be useful. For ours is not the first age of large-scale international capital flows, or of virulent international financial crises. We today [...]
This paper reviews the policy response to the 2007–09 financial crisis from the perspective of a senior Treasury official at the time. Government agencies faced severe constraints in addressing the [...]
This paper examines the macroeconomic dynamics of the 2007–09 recession in the United States and the subsequent slow recovery. [W]e reach three main conclusions. First, although many of the events [...]
This paper introduces a proposal for money market fund (MMF) reform to mitigate the systemic risk and externalities that arise from the funds’ vulnerability to runs and to protect shareholders [...]
The conclusions of our paper are as follows. From a theoretical perspective, there are reasons to believe that debt levels are not irrelevant, in the Modigliani-Miller sense that firm and [...]
The years 1987 and 1988 saw some dramatic developments in U.S. financial markets. The 1987 stock market crash was followed in 1988 by intense corporate restructuring activity, including a record [...]
Evidence of a housing bubble has been suggestive but indirect, in that it does not address the key question of whether housing prices are justified by the value of the [...]
The authors use the Federal Reserve’s Survey of Consumer Finances to document a boom in home ownership and mortgage borrowing among young families in the years leading up to the [...]
We examine the payoff performance, up to the end of 2013, of non-agency residential mortgage-backed securities (RMBS), issued up to 2008. We have created a new and detailed data set [...]
We show how real and financial frictions amplify the impact of uncertainty shocks. We build a model with real frictions, and find adding financial frictions roughly doubles the impact of [...]