ECONOMY
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Measuring Treasury Market Depth – Liberty Street Economics
Michael Fleming, Isabel Krogh, and Claire Nelson A commonly used measure of market liquidity is market depth, which refers to the quantity of securities market participants are willing to buy or sell at particular prices. The market depth of U.S. Treasury securities, in particular, is assessed in many analyses of market functioning, including this Liberty Street Economics post on liquidity…
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Racial and Ethnic Wealth Inequality in the Post-Pandemic Era
By Rajashri Chakrabarti, Natalia Emanuel, and Ben Lahey Wealth is unevenly distributed across racial and ethnic groups in the United States. In this first post in a two-part series on wealth inequality, we use the Distributional Financial Accounts (DFA) to document these disparities between Black, Hispanic, and white households from the first quarter of 2019 to the third quarter of…
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Wealth Inequality by Age in the Post-Pandemic Era
Rajashri Chakrabarti, Natalia Emanuel, and Ben Lahey Editor’s note: Since this post was first published, percentages cited in the first paragraph have been corrected. (February 7, 1pm) Following our post on racial and ethnic wealth gaps, here we turn to the distribution of wealth across age groups, focusing on how the picture has changed since the beginning of the pandemic.…
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Small Business Recovery after Natural Disasters in the Fed’s Second District
Asani Sarkar A previous Liberty Street Economics post found that minority-owned small businesses in the Federal Reserve’s Second District have been particularly vulnerable to natural disasters. Here we focus on the aftermath of disasters (such as hurricanes, floods, wildfires, droughts, and winter storms) and examine disparities in the ability of these firms to reopen their businesses and access disaster relief.…
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Flood-Prone Basement Housing in New York City and the Impact on Low- and Moderate-Income Renters
Claire Kramer Mills, Ambika Nair, and Julian di Giovanni Hurricane Ida, which struck New York in early September 2021, exposed the region’s vulnerability to extreme rainfall and inland flooding. The storm created massive damage to the housing stock, particularly low-lying units. This post measures the storm’s impact on basement housing stock and, following the focus on more-at-risk populations from the…
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Banks versus Hurricanes – Liberty Street Economics
Peter Anagnostakos, Jason Bram, Benjamin Chan, Natalia Fischl-Lanzoni, Hasan Latif, James M. Mahoney, Don Morgan, Ladd Morgan, and Ivelisse Suarez The impacts of hurricanes analyzed in the previous post in this series may be far-reaching in the Second District. In a new Staff Report, we study how banks in Puerto Rico fared after Hurricane Maria struck the island on September…
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A Bayesian VAR Model Perspective on the Lagged Effect of Monetary Policy
Richard Crump, Marco Del Negro, Keshav Dogra, Pranay Gundam, Donggyu Lee, Ramya Nallamotu, and Brian Pacula Over the last few years, the U.S. economy has experienced unusually high inflation and an unprecedented pace of monetary policy tightening. While inflation has fallen recently, it remains above target, and the economy continues to expand at a robust pace. Does the resilience of…
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The New York Fed DSGE Model Perspective on the Lagged Effect of Monetary Policy
Richard Crump, Marco Del Negro, Keshav Dogra, Pranay Gundam, Donggyu Lee, Ramya Nallamotu, and Brian Pacula This post uses the New York Fed DSGE model to ask the question: What would have happened to interest rates, output, and inflation had the Federal Reserve been following an average inflation targeting (AIT)-type reaction function since 2021:Q2, when inflation began to rise—as opposed…
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The Power of Proximity: How Working beside Colleagues Affects Training and Productivity
Natalia Emanuel, Emma Harrington, and Amanda Pallais Firms remain divided about the value of the office for “office” workers. Some firms think that their employees are more productive when working from home. Others believe that the office is a key place for investing in workers’ skills. In this post, which is based on a recent working paper, we examine whether…
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The Nonbank Shadow of Banks
Nicola Cetorelli and Saketh Prazad Financial and technological innovation and changes in the macroeconomic environment have led to the growth of nonbank financial institutions (NBFIs), and to the possible displacement of banks in the provision of traditional financial intermediation services (deposit taking, loan making, and facilitation of payments). In this post, we look at the joint evolution of banks—referred to…
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