This article suggests that one possible option for reducing the costs and risks to the financial system and public safety net is to restrict some of the nontraditional activities that have become allowable for banking organizations in recent years. The first section of the article reviews the traditional structure of the U.S. banking [...]
Today, 7605 documents
in our database
in our database
   |
Posted on February 14th, 2012
Posted on October 13th, 2011
Small and new businesses, widely credited as engines for job growth, have struggled during the recovery. One reason, say some analysts, is that bank lending to small businesses has declined steadily since the start of the recession. If, as many small businesses claim, the supply of credit from banks has contracted, then increasing [...] Posted on September 14th, 2011
This paper considers a model with financial frictions and studies the role of expectations and unconventional monetary policy response to financial crises. During a financial crisis, the financial sector has reduced ability to provide credit to productive firms, and the central bank may help lessen the magnitude of the downturn by using unconventional [...] Posted on June 29th, 2011
One of the key features of the U.S. economy’s slow recovery from the 2007-09 recession has been abnormally low bank lending to households and corporate businesses. While demand for loans may be sluggish, much of the slowdown may stem from banks’ reluctance to lend. Before resuming normal lending activity, banks must first replenish [...] Posted on April 26th, 2011
Policymakers use various indicators of economic activity to assess economic conditions and set an appropriate stance for monetary policy. A key challenge for policymakers is finding indicators that give a clear and accurate signal of the state of the economy in real time—that is, at the time policy is actually made. Unfortunately, most [...] 2 pages
|
|
|
|
||