The articles and papers listed here cover aspects of the financial crisis and represent a range of opinions and analysis. The Federal Reserve Bank of St. Louis does not endorse the views presented in these articles or papers.
WHAT'S NEW
Central Bank Tools and Liquidity Shortages
by Stephen G. Cecchetti and Piti Disyatat
in Federarl Reserve Bank of New York Economic Policy Review, October 2009
The global financial crisis that began in mid-2007 has renewed concerns about financial instability and focused attention on the fundamental role of central banks in preventing and managing systemic crises. In response to the turmoil, central banks have made extensive use of both new and existing tools for supplying central bank money to financial ... [ more ]
The Commercial Paper Market, the Fed, and the 2007-2009 Financial Crisis
by Richard G. Anderson and Charles S. Gascon
in Federal Reserve Bank of St. Louis Review, November 2009
Since its inception in the early nineteenth century, the U.S. commercial paper market has grown to become a key source of short-term funding for major businesses, with issuance averaging over $100 billion per day. In the fall of 2008, the commercial paper market achieved national prominence when increasing market stress caused some to fear that,... [ more ]
Confronting Too Big to Fail
by Daniel K. Tarullo
in Speech, Board of Governors, October 2009
Tarullo suggests that the reform process cannot be judged a success unless it substantially reduces systemic risk generally and, in particular, the too-big-to-fail problem. This speech addresses the task of forging an effective response to this problem
The Federal Reserve's Balance Sheet: An Update
by Ben S. Bernanke
in Speech, Board of Governors, October 2009
Bernanke reviews the most important elements of the Federal Reserve's balance sheet, as well as some aspects of their evolution over time. With this, he explains the steps the Federal Reserve has taken, beyond conventional interest rate reductions, to mitigate the financial crisis and the recession, as well as how those actions will be reversed as ... [ more ]
Monetary Policy Research and the Financial Crisis: Strengths and Shortcomings
by Donald L. Kohn
in Speech, Board of Governors, October 2009
Kohn, in his speech, asks "What aspects of the existing literature in monetary economics have been particularly helpful in formulating the course of monetary policy since the onset of the financial crisis? Second, what are the gaps in this literature that have become particularly evident since the onset of the financial crisis and, therefore, would... [ more ]
Monetary Policy Stance: The View from Consumption Spending
by William T. Gavin
in Federal Reserve Bank of St. Louis Economic Synopses, October 2009
The author suggests that we should expect a third business cycle in succession in which the real federal funds rate reaches its trough well after the economy begins to recover
More Lessons from the Crisis
by William C. Dudley
in Federal Reserve Bank of New York Speech, November 2009
Remarks at teh Center for Economic Policy Studies Symposium
Paulson’s Gift
by Pietro Veronesi and Luigi Zingales
in NBER Working Paper, October 2009
The authors calculate the costs and benefits of the largest ever U.S. Government intervention in the financial sector announced the 2008 Columbus-day weekend. They estimate that this intervention increased the value of banks’ financial claims by $131 billion at a taxpayers’ cost of $25 -$47 billions with a net benefit between $84bn and $107bn. B... [ more ]
Provision of Liquidity through the Primary Credit Facility during the Financial Crisis: A Structural Analysis
by Erhan Artuç and Selva Demiralp
in Federal Reserve Bank of New York Economic Policy Review, October 2009
In response to the liquidity crisis that began in August 2007, central banks designed a variety of tools for supplying liquidity to financial institutions. The Federal Reserve introduced several programs, such as the Term Auction Facility, the Term Securities Lending Facility, and the Primary Dealer Credit Facility, while enhancing its open market ... [ more ]
Systemic Risk and Deposit Insurance Premiums
by Viral V. Acharya, João A. C. Santos, and Tanju Yorulmazer
in Federal Reserve Bank of New York Economic Policy Review, October 2009
While systemic risk—the risk of wholesale failure of banks and other financial institutions—is generally considered to be the primary reason for supervision and regulation of the banking industry, almost all regulatory rules treat such risk in isolation. In particular, they do not account for the very features that create systemic risk in the first... [ more ]