Staff Working Papers

Research intended for journal publication and published in progress, in order to invite feedback from a technical audience.

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1087 result(s)

Optimal Quantitative Easing in a Monetary Union

How should a central bank conduct quantitative easing (QE) in a monetary union when regions differ in their size and portfolio characteristics? Optimal QE policy suggests allocating greater purchases from the region that faces stronger portfolio frictions, and not necessarily according to each region’s size.

How Should Unemployment Insurance Vary over the Business Cycle?

Staff Working Paper 2020-47 Serdar Birinci, Kurt See
Should unemployment benefits be more generous during economic downturns? The optimal amount and duration of benefit payments ultimately depend on the demographic and wealth characteristics of benefit recipients.

Understanding Trend Inflation Through the Lens of the Goods and Services Sectors

Staff Working Paper 2020-45 Yunjong Eo, Luis Uzeda, Benjamin Wong
The goods and services sectors have experienced considerably different dynamics over the past three decades. Our goal in this paper is to understand how such contrasting behaviors at the sectoral level affect the aggregate level of trend inflation dynamics.

Outside Investor Access to Top Management: Market Monitoring versus Stock Price Manipulation

Staff Working Paper 2020-43 Josef Schroth
Should managers be paid in stock options if they provide stock-market participants with information about the firm? This paper studies how firm owners trade off the benefit of stock-price incentives and better-informed market participants against the cost of potential stock-price manipulation.

On Causal Networks of Financial Firms: Structural Identification via Non-parametric Heteroskedasticity

Staff Working Paper 2020-42 Ruben Hipp
Various business interactions of banks create a network of hidden relationships, which cannot be directly inferred from the correlation of bank stock returns. Without causality, it remains unclear how policy interventions change the network. Thus, this paper aims to find the causal network as anticipated by investors.

Interbank Asset-Liability Networks with Fire Sale Management

Staff Working Paper 2020-41 Zachary Feinstein, Grzegorz Halaj
Raising liquidity when funding is stressed creates pressure on the financial market. Liquidating large quantities of assets depresses their prices and may amplify funding shocks. How do banks weathering a funding crisis contribute to contagion risk?