Chicago Fed Letter discusses the role and scope of policy in determining health care prices and the particular policies that have affected the evolution of health care service prices over the past decade.

How have banks responded to the flatter yield curve? Because banks make most of their money by borrowing and lending at different interest rates, the slope of the yield curve has important implications for their profitability and equity values. So, it has the potential to affect banks’ decisions about lending and risk-taking.

Chicago Fed Letter article explains how catastrophe (CAT) bonds work, and then looks at how the market for them has grown in size, coverage, and sophistication since 1997. It also explores how and why different types of institutions use CAT bonds to transfer insurance risks.