Economic Perspectives
A Monetarist View of the Fed’s Balance Sheet Normalization Period
This article examines the methodology used to determine that the Fed’s remittances to the U.S. Treasury will remain positive during its balance sheet normalization period. In 2017, the Fed began the process of gradually shrinking its balance sheet by reducing its fixed-income holdings.
Household Inequality and the Consumption Response to Aggregate Real Shocks
Gene Amromin, Mariacristina De Nardi and Karl Schulze
What role did household inequality play in the significant drop in consumption that occurred during the Great Recession? And how has it affected the pace of recovery? The share of borrowing-constrained households increased dramatically during the financial crisis and remained high at least until 2012.
What Explains the Decline in Life Insurance Ownership?
Daniel Hartley, Anna Paulson and Katerina Powers
Why are fewer people buying life insurance? If people in 2013 behaved the same way they did in 1989, life insurance ownership would have increased. Article analyzes changes in socioeconomic and demographic characteristics and diversity in life insurance ownership across education, income, and race/ethnic groups.
Blockchain Financial Market Innovation
Rebecca Lewis, John McPartland, and Rajeev Ranjan
What is blockchain? This technology allows the creation of immutable records of transactions accessible by all participants in a peer-to-peer network without a trusted third party, such as a government agency or financial institution.
