News and Commentary An article in IPPMedia provides an excellent outline of the relationship between financialization and broader economic growth. The financial sector is essential, and in previous decades it [...]
News and Commentary In the second part of their posts on Liberty Street Economics' new model for contagion in the financial sector, Fernando Duarte, Collin Jones, and Francisco Ruela evaluate [...]
News and Commentary Liberty Street Economics has a new model for contagion risk in the financial sector. They are able to model by inputting different losses from sectors outside the [...]
News and Commentary Stephen Matteo Miller has the second and third part of his series on the number of banks and bank concentration up at the Mercatus Center. The second [...]
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 [...]