Research Basel III Liquidity Requirements and Systemically Important Bank Surcharges. A new proposal from The Clearing House finds that liquidity coverage ratio (LCR) requirements introduced with the Basel III accords [...]
New Research How ideology, education, and experience shape FOMC member views. New research from NBER analyzes the preferences of Federal Open Market Committee (FOMC) and the tendency of 70% of [...]
Welcome to capturedecon.wpengine.com, a new website dedicated to the problems of “regulatory capture” and “rent-seeking”—economist-speak for the pursuit of profits through politics. The capitalist market economy functions well when rival [...]
In any search for policies that slow growth and drive inequality, financial regulation is an obvious place to start. After all, the financial sector was Ground Zero for the worst [...]
With the national unemployment rate running below 4 percent, the possibility that an overheated economy could lead to financial imbalances, which in turn could generate or amplify economic distress, has [...]
An overheated economy has the potential to lead to financial imbalances, which in turn could generate or amplify economic distress. In two complementary FEDS notes, we study the link between [...]
We show that the distribution of combined loan-to-value ratios (CLTVs) for purchase mortgages in the U.S. has been remarkably stable over the last 25 years. But there was a dramatic [...]
Between 1998 and 2006, house prices in the United States rose by about 90 percent but subsequently experienced a sharp decline by about a third until 2010. These house‐price developments [...]
Yesterday, the Federal Reserve released the results of the 2018 Comprehensive Capital Analysis and Review (CCAR). As described in previous TCH’s posts, the 2018 results were crucially driven by the [...]
We examine the negative relationship between the rate of growth in credit and the rate of growth in output per worker. Using a panel of 20 countries over 25 years, [...]