Search Results
Journal Article
Forces shaping Philadelphia's future.
Does Philadelphia have what it takes to expand economic growth and attract more people? It's a challenge, says President Anthony Santomero in "Forces Shaping Philadelphia's Future." The city has many things to recommend it as a location. Nevertheless, it has faced some difficulties in cultivating a role in certain important segments of the economy, and the city's population has been declining. But good things are also happening. Ultimately, Philadelphia's success - and the success of the surrounding area - depends on the creativity and commitment of its civic and business leaders. If they ...
Conference Paper
The market's evaluation of bank risk: a methodological approach
Journal Article
Great expectations: the role of beliefs in economics and monetary policy
Whether one looks at consumers or businesses, expectations - people's beliefs - are driving forces of every economy. The economic outcomes one can expect from public policy are affected by the way beliefs are formed and how they vary over time. In "Great Expectations: The Role of Beliefs in Economics and Monetary Policy," President Anthony Santomero presents his perspective on the important role beliefs play in economic decisions and policymaking. He also offers some observations on the important role the policymaker's credibility plays in determining the outcome of any monetary policy ...
Journal Article
Perspectives on research issues in consumer behavior
What happens when an academic researcher becomes a policymaker? Recently, President Anthony Santomero shared some thoughts on this topic with members for the Downtown Economists Club in New York City. In particular, he talked about several conundrums he's encountered since moving from the academy to the central bank. We've reprinted his speech "The Complexities of Monetary Policy" in this issue of the Business Review
Journal Article
Monetary policy: stability through change.
The recent business cycle has been driven by two forces: a series of extraordinary events and some longer term secular trends. In "Monetary Policy: Stability Through Change," President Anthony Santomero discusses how these extraordinary events, including the bursting of the tech bubble, the aftermath of 9/11, the wars in Afghanistan and Iraq, and the corporate accounting and governance scandals, have affected the U.S. economy. He then turns his focus to the longer term trends, including rapidly changing technology and the increasingly integrated global marketplace, which he expects to be ...
Working Paper
An overall perspective on banking regulation
Recently, the theory of banking regulation has undergone important changes. This has been the consequence of a number of compounding effects that have been occurring in the financial sector. First among these is on-going financial innovation, which has caused a virtual revolution in both financial instruments and markets. As a result, the markets and institutions that must be regulated have changed substantially over time. At the same time, regulation has evolved, as the regulators have learned the lessons from the recent spat of banking crises. As a consequence of these experiences, ...
Journal Article
Flexible commitment or inflation targeting for the U.S.?
The idea of creating a framework for explicit inflation targeting in the U.S. has recently become a topic of considerable discussion. The key question is: Could inflation targeting improve on the U.S. economy's performance? President Anthony Santomero thinks inflation targeting makes sense for the U.S., in principle. But he cautions that several important issues must be worked out first. In this quarter's message, "Flexible Commitment for Inflation Targeting for the U.S.?" he discusses these issues, which include calibrating the target and reconciling inflation targeting with the Fed's ...
Journal Article
Does bank regulation help customers?
The answer, says Federal Reserve Bank of Philadelphia President Anthony Santomero, is yes, no, and maybe. Yes, the government must absorb some of the risks inherent in the banking system in order to maintain the system's stability. No, regulations that ignore the self-interested reactions of both bankers and their customers will not serve those customers well. And maybe, bank regulations, in principle, can help if they increase competition or the flow of information. In practice, however, some regulations designed to improve the quality of information have met with mixed success. President ...
Journal Article
De novo banking in the third district