Recently added articles from Economic Quarterly - Federal Reserve Bank of Richmond:
New Keynesian Economics: A Monetary Perspective
Jul 01, 2008; ... (ProQuest: ... denotes formulae omitted.) Since John Maynard Keynes wrote the General Theory of Employment, Interest, and Money in 1936, Keynesian economics has been highly influential among academics and policymakers. Keynes has certainly had his detractors, though, with the most ...
Understanding Monetary Policy Implementation
Jul 01, 2008; ... (ProQuest: ... denotes formulae omitted.) Over the last two decades, central banks around theworld have adopted a common approach to monetary policy that involves targeting the value of a short-term interest rate. In the United States, for example, the Federal Open Market Committee ...
Nominal Frictions, Relative Price Adjustment, and the Limits to Monetary Policy
Jul 01, 2008; ... (ProQuest: ... denotes formulae omitted.) There are two broad classes of sticky-price models that have become popular in recent years. In the first class, prices adjust infrequently by assumption (so-called time-dependent models) and in the second class prices adjust infrequently because ...
CEO Compensation: Trends, Market Changes, and Regulation
Jul 01, 2008; ... (ProQuest: ... denotes formulae omitted.) Compensation figures for the top managers of large firms are on the news frequently. Newspapers report the salaries, the bonuses, and the profits from selling stock options of the highest paid executives, often under headlines suggesting ...
On the Evolution of Income Inequality in the United States
Apr 01, 2008; ... The recent rise in income inequality in the United States has received considerable attention in policy debates.1 This article discusses individual income inequality trends. In doing so, we summarize results presented in existing work. As in previous studies, the article shows that income ...
On the Sources of Movements in Inflation Expectations: A Few Insights from a VAR Model
Apr 01, 2008; ... (ProQuest: ... denotes formula omitted.) The public's expectations of inflation play an important role in influencing actual inflation and the Federal Reserve's ability to achieve price stability. Hence, there is considerable interest in identifying the economic factors that determine ...
What is the Monetary Standard, Or, How Did the Volcker-Greenspan FOMCs Tame Inflation?
Apr 01, 2008; ... (ProQuest: ... denotes formula omitted.) What is the monetary standard? Another way to ask this question is to ask how central banks control the price level. In this article, I contrast two views. What I term the "quantity-theory" view implies that to control inflation (with the interest ...
Limits to Redistribution and Intertemporal Wedges: Implications of Pareto Optimality with Private Information
Apr 01, 2008; ... (ProQuest: ... denotes formulae omitted.) Traditionally an object of interest in microeconomics, models with privately informed agents have recently been used to study numerous topics in macroeconomics.1 Characterization of Pareto-optimal allocations is an essential step in these ...
Should Bank Supervisors Disclose Information About Their Banks?
Jan 01, 2008; ... (ProQuest: ... denotes formulae omitted.) In order to preserve the safety and soundness of the banking system, bank supervisors collect a great deal of information about a bank. They examine its balance sheet, its operations, and its management. They observe the reports made by a bank's ...
Credit Access, Labor Supply, and Consumer Welfare
Jan 01, 2008; ... (ProQuest: ... denotes formulae omitted.) Recent work has argued that U.S. households have seen a systematic improvement in their ability to borrow against future labor income.1 First, Narajabad (2007) points out that the "extensive" margin of credit has changed; he calculates that in ...
Antitrust Analysis in Banking: Goals, Methods, and Justifications in a Changed Environment
Jan 01, 2008; ... (ProQuest: ... denotes formula omitted.) Antitrust analysis (also known as competitive analysis) of bank mergers has used the same basic procedures for decades, even though the banking market has experienced significant shifts. Do these changes in the banking market call for changes in ...
A Quantitative Study of the Role of Wealth Inequality on Asset Prices
Jan 01, 2008; ... (ProQuest: ... denotes formulae omitted.) There is an extensive body of work devoted to understanding the determinants of asset prices. The cornerstone formula behind most of these studies can be summarized in equation (1). The asset pricing equation states in recursive formulation that ...
Evolving Inflation Dynamics and the New Keynesian Phillips Curve
Oct 01, 2007; ... (ProQuest: ... denotes formulae omitted.) In most industrialized economies, periods of above average inflation tend to be associated with above average economic activity, for example, as measured by a relatively low unemployment rate. This statistical relationship, known as the Phillips ...
The Evolution of City Population Density in the United States
Oct 01, 2007; ... (ProQuest: ... denotes formulae omitted.) The answers to important questions in urban economics depend on the density of population, not the size of population. In particular, positive production or residential externalities, as well as negative externalities such as congestion, are ...
Currency Quality and Changes in the Behavior of Depository Institutions
Oct 01, 2007; ... (ProQuest: ... denotes formulae omitted.) The Federal Reserve System distributes currency to and accepts deposits from Depository Institutions (DIs). In addition, the Federal Reserve maintains the quality level of currency in circulation by inspecting all deposited notes. Notes that meet ...
Non-Stationarity and Instability in Small Open-Economy Models Even When They Are "Closed"
Oct 01, 2007; ... (ProQuest: ... denotes formulae omitted.) Open economies are characterized by the ability to trade goods both intra- and intertemporally, that is, their residents can move goods and assets across borders and over time. These transactions are reflected in the current account, which ...
Inflation and Unemployment: A Layperson's Guide to the Phillips Curve
Jul 01, 2007; ... What do you remember from the economics class you took in college? Even if you didn't take economics, what basic ideas do you think are important for understanding the way markets work? In either case, one thing you might come up with is that when the demand for a good rises-when more and more ...
A Taylor Rule and the Greenspan Era
Jul 01, 2007; ... (ProQuest: ... denotes formulae omitted.) There is considerable interest in determining whether monetary policy actions taken by the Federal Reserve under Chairman Alan Greenspan can be summarized by a Taylor rule. The original Taylor rule relates the federal funds rate target to two ...
Quantitative Models of Sovereign Default and the Threat of Financial Exclusion
Jul 01, 2007; ... (ProQuest: ... denotes formulae omitted.) Business cycles in small emerging economies differ from those in developed economies. Emerging economies feature interest rates that are higher, more volatile, and countercyclical (interest rates are usually acyclical in developed economies) ....
Barriers to Foreign Direct Investment Under Political Instability
Jul 01, 2007; ... (ProQuest: ... denotes formulae omitted.) Foreign direct investment (FDI), as pointed out by Kindleberger (1969), arises when the host country has an investment opportunity that it cannot exploit by itself because it lacks the means or technical know-how, or because of market ...