Institution
Federal Reserve System
Other•Washington D.C., District of Columbia, United States•
About: Federal Reserve System is a other organization based out in Washington D.C., District of Columbia, United States. It is known for research contribution in the topics: Monetary policy & Inflation. The organization has 2373 authors who have published 10301 publications receiving 511979 citations.
Topics: Monetary policy, Inflation, Interest rate, Market liquidity, Debt
Papers published on a yearly basis
Papers
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TL;DR: In this paper, a measure of bank lending standards collected by the United States Federal Reserve reveals that shocks to lending standards are significantly correlated with innovations in commercial loans at banks and in real output.
Abstract: VAR analysis on a measure of bank lending standards collected by the
Federal Reserve reveals that shocks to lending standards are significantly
correlated with innovations in commercial loans at banks and in real output.
Credit standards strongly dominate loan rates in explaining variation in
business loans and output. Standards remain significant when we include
various proxies for loan demand, suggesting that part of the standards
fluctuations can be identified with changes in loan supply. Standards are
also significant in structural equations of some categories of inventory
investment, a GDP component closely associated with bank lending. The
estimated impact of a moderate tightening of standards on inventory investment
is of the same order of magnitude as the decline in inventory
investment over the typical recession.
606 citations
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TL;DR: In this paper, the authors show that this approach will be unreliable unless the underlying economy satisfies three types of strong restrictions, i.e., strong restrictions on the long-run effects of shocks.
Abstract: Many recent articles have identified behavioral disturbances in vector autoregressions by imposing restrictions on the long-run effects of shocks. This article demonstrates that this approach will be unreliable unless the underlying economy satisfies three types of strong restrictions. Although many aspects of these issues have been raised before, this article draws out and illustrates the implications for inferences under the long-run scheme. Furthermore, it provides strategies for dealing with the problems.
604 citations
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TL;DR: The authors examine persistence in U.S. aggregate output by estimating fractionally integrated ARIMA models, and find evidence of long memory, which induces persistence, though this long memory need not be associated with a unit root.
600 citations
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TL;DR: In this article, a small open economy macroeconomic model where financial conditions influence aggregate behavior was developed to explore the connection between the exchange rate regime and financial distress and showed that fixed exchange rates exacerbate financial crises by tying the hands of the monetary authorities.
Abstract: We develop a small open economy macroeconomic model where financial conditions influence aggregate behavior. We use this model to explore the connection between the exchange rate regime and financial distress. We show that fixed exchange rates exacerbate financial crises by tieing the hands of the monetary authorities. We then investigate the quantitative significance by first calibrating the model to Korean data and then showing that it does a reasonably good job of matching the Korean experience during its recent financial crisis. In particular, the model accounts well for the sharp increase in lending rates and the large drop in output, investment and productivity during the 1997-1998 episode. We then perform some counterfactual exercises to illustrate the quantitative significance of fixed versus floating rates both for macroeconomic performance and for welfare. Overall, these exercises imply that welfare losses following a financial crisis are significantly larger under fixed exchange rates relative to flexible exchange rates.
600 citations
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TL;DR: In this article, a parsimonious model of occupational choice that allows for entrepreneurial entry, exit, and investment decisions in the presence of borrowing constraints is presented, which fits very well a number of empirical observations, including the observed wealth distribution for entrepreneurs and workers.
Abstract: This paper constructs and calibrates a parsimonious model of occupational choice that allows for entrepreneurial entry, exit, and investment decisions in the presence of borrowing constraints. The model fits very well a number of empirical observations, including the observed wealth distribution for entrepreneurs and workers. At the aggregate level, more restrictive borrowing constraints generate less wealth concentration and reduce average firm size, aggregate capital, and the fraction of entrepreneurs. Voluntary bequests allow some high-ability workers to establish or enlarge an entrepreneurial activity. With accidental bequests only, there would be fewer very large firms and less aggregate capital and wealth concentration.
598 citations
Authors
Showing all 2412 results
Name | H-index | Papers | Citations |
---|---|---|---|
Ross Levine | 122 | 398 | 108067 |
Francis X. Diebold | 110 | 368 | 74723 |
Kenneth Rogoff | 107 | 390 | 75971 |
Allen N. Berger | 106 | 382 | 65596 |
Frederic S. Mishkin | 100 | 372 | 34898 |
Thomas J. Sargent | 96 | 370 | 39224 |
Ben S. Bernanke | 96 | 446 | 76378 |
Stijn Claessens | 96 | 462 | 42743 |
Andrew K. Rose | 88 | 374 | 42605 |
Martin Eichenbaum | 87 | 234 | 37611 |
Lawrence J. Christiano | 85 | 253 | 37734 |
Jie Yang | 78 | 532 | 20004 |
James P. Smith | 78 | 372 | 23013 |
Glenn D. Rudebusch | 73 | 226 | 22035 |
Edward C. Prescott | 72 | 235 | 55508 |