Research Brief

Policy Uncertainty in Japan

In the aftermath of the Financial Crisis (2007-08) and the Great Recession (2007-09), households and firms faced lots of uncertainty, not only about when and how the economy would recover, but also confusion on whether and how the administration, Congress, and the Federal Reserve would react. For families considering the purchase of a new car or a move to another city for a job, and for businesses considering new hires or a plant expansion, this policy uncertainty meant that the prudent choice was often wait-and-see.
Topics:  Financial Markets, Monetary Policy
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Empirical Trends That Inform Decreasing US Business Dynamism

Panel 1a is taken from Andrews et al. (2016), Panel 1b from Decker et al....
Topics:  Financial Markets, Technology & Innovation
Research Brief

Low Interest Rates, Market Power, and Productivity Growth

In the aftermath of the Financial Crisis and Great Recession of 2007-09, one explanation for the US economy’s low-level growth rate was a depression-era idea known as “secular stagnation,” which posits that such factors as persistent and very low interest rates, and/or wages and prices that remain at consistent levels, weigh down the economy’s growth rate. Interest rates near zero cannot be lowered further to incent borrowing and spending, and without such fuel for the economy, wages and prices become stagnant, or “sticky.” Growth remains sluggish.
Topics:  Financial Markets
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How Lower Interest Rates Can Stall Growth

A decrease in consumer demand reduces interest rates and leads to a decrease in productivity...
Topics:  Financial Markets
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The Glass Ceiling

As these two figures reveal, even though women are attaining college degrees at rates significantly...
Topics:  Employment & Wages, Financial Markets
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Analysis of Mortgage-Backed Securities and the Financial Crisis of 2008

Ratings agencies were roundly criticized for mis-rating mortgage backed securities and, thus, helping fuel the...
Topics:  Financial Markets
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Number and Costs of U.S. Bank Failures

US bank failures spiked during the recent Financial Crisis and Great Recession, as shown in...
Topics:  Financial Markets
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Dollar and Euro Shares of Cross-Border Corporate Bond Positions

Following the Great Recession, the dollar became the currency of denomination for cross-border holdings at...
Topics:  Financial Markets