Search Results
Showing results 1 to 10 of approximately 118.
(refine search)
Journal Article
Recent evolution of large-value payment systems : balancing liquidity and risk
Martin, Antoine
(2005)
Large-value payment systems have evolved rapidly in the last 20 years, continually striking a balance between providing liquidity and keeping settlement risk under control. Changes to the design or to the risk management policies of such systems were needed, in part, due to the growth in the value of transactions on these systems. For example, in the United States the value of transactions on Fedwire, the Federal Reserve?s large-value payment system, increased from about 50 times GDP in 1989 to over 62 times GDP in 2003. This value exceeded $704 trillion in 2003. This growth raised concerns ...
Economic Review
, Volume 90
, Issue Q I
, Pages 33-57
Report
Reconciling Bagehot with the Fed's response to September 11
Martin, Antoine
(2005-08-01)
The nineteenth-century economist Walter Bagehot maintained that in order to prevent bank panics, a central bank should provide liquidity at a very high rate of interest. However, most of the theoretical literature on liquidity provision suggests that central banks should lend at an interest rate of zero. This latter recommendation is broadly consistent with the Federal Reserve?s behavior in the days following September 11, 2001. This paper shows that Bagehot?s recommendation can be reconciled with the Fed?s policy if one recognizes that Bagehot had in mind a commodity money regime in which ...
Staff Reports
, Paper 217
Discussion Paper
Pick Your Poison: How Money Market Funds Reacted to Financial Stress in 2011
Krishnan, Neel; Martin, Antoine; Sarkar, Asani
(2013-03-06)
The summer of 2011 was an unsettling period for financial markets. In the United States, Congress was unable to agree to terms for raising the debt ceiling until August, creating considerable uncertainty over whether the government would be forced to default on its debt. In Europe, the borrowing costs of some peripheral countries increased dramatically, raising questions about the health of some of the largest banks. In this post, we analyze data recently made public by the Securities and Exchange Commission (SEC) to see how the U.S. money market mutual fund (MMF) industry reacted to these ...
Liberty Street Economics
, Paper 20130306
Report
A study of competing designs for a liquidity-saving mechanism
Martin, Antoine; McAndrews, James J.
(2008-07-01)
We study two designs for a liquidity-saving mechanism (LSM), a queuing arrangement used with an interbank settlement system. We consider an environment where banks are subjected to liquidity shocks. Banks must make the decision to send, queue, or delay their payments after observing a noisy signal of the shock. With a balance-reactive LSM, banks can set a balance threshold below which payments are not released from the queue. Banks can choose their threshold such that the release of a payment from the queue is conditional on the liquidity shock. With a receipt-reactive LSM, a payment is ...
Staff Reports
, Paper 336
Working Paper
Reconciling Bagehot with the Fed's response to Sept. 11
Martin, Antoine
(2002)
Bagehot (1873) states that in order to prevent bank panics a central bank should provide liquidity to the market at a "very high rate of interest". This seems to be in sharp contrast with the policy adopted by the Federal Reserve after September 11 when, for a few days, the Federal Funds Rate was very close to zero. This paper shows that Bagehot's recommendation can be reconciled with the Fed's policy if one recognizes that Bagehot has in mind a commodity money regime so that the amount of reserves available is limited. A high price for this liquidity allows banks that need it most to ...
Research Working Paper
, Paper RWP 02-10
Discussion Paper
Expanding the Toolkit: Facilities Established to Respond to the COVID-19 Pandemic
Kovner, Anna; Martin, Antoine
(2020-09-22)
The Federal Reserve’s response to the coronavirus pandemic has been unprecedented in its size and scope. In a matter of months, the Fed has, among other things, cut the federal funds rate to the zero lower bound, purchased a large amount of Treasury securities and agency mortgage‑backed securities (MBS) and, together with the U.S. Treasury, introduced several lending facilities. Some of these facilities are very similar to ones introduced during the 2007-09 financial crisis while others are completely new. In this post, we argue that the new facilities, while unprecedented, are a natural ...
Liberty Street Economics
, Paper 20200922
Discussion Paper
Counterparties and Collateral Requirements for Implementing Monetary Policy
Eisner, Emily; Martin, Antoine; Ylva Søvik
(2016-02-02)
What types of counterparties can borrow from or lend to a central bank, and what kind of collateral must they possess in order to receive a loan? These are two key aspects of a central bank?s monetary policy implementation framework. Since at least the nineteenth century, it has been understood that an important role of central banks is to lend to solvent but illiquid institutions, particularly during a crisis, as this provides liquidity insurance to the financial system. They also provide liquidity to markets during normal times as a means to implement monetary policy. Central banks that ...
Liberty Street Economics
, Paper 20160202
Working Paper
Overnight RRP Operations as a Monetary Policy Tool: Some Design Considerations
Logan, Lorie; Remache, Julie; McCabe, Patrick E.; Martin, Antoine; Natalucci, Fabio M.; Frost, Joshua
(2015-02-19)
We review recent changes in monetary policy that have led to development and testing of an overnight reverse repurchase agreement (ON RRP) facility, an innovative tool for implementing monetary policy during the normalization process. Making ON RRPs available to a broad set of investors, including nonbank institutions that are significant lenders in money markets, could complement the use of the interest on excess reserves (IOER) and help control short-term interest rates. We examine some potentially important secondary effects of an ON RRP facility, both positive and negative, including ...
Finance and Economics Discussion Series
, Paper 2015-10
Discussion Paper
What Explains the June Spike in Treasury Settlement Fails?
Martin, Antoine; Fleming, Michael J.; Keane, Frank M.; McMorrow, Michael
(2014-09-19)
In June of this year?as we noted in the preceding post?settlement fails in U.S. Treasury securities spiked to their highest level since the implementation of the fails charge in May 2009. Our first post reviewed what fails are, why they arise, and how they can be measured. In this post, we dig into the fails data to identify possible explanations for the high level of fails in June. We observe that sequential fails of several benchmark securities accounted for the lion?s share of fails in June, but that fails in seasoned securities?which have been trending upward for some time?were also ...
Liberty Street Economics
, Paper 20140919a
Discussion Paper
How Do the Fed's MBS Purchases Affect Credit Allocation?
Martin, Antoine; Schulhofer-Wohl, Sam
(2018-08-06)
It is sometimes said that the Federal Reserve should not engage in “credit allocation.” But what does credit allocation actually mean? And how do current Fed policies affect the allocation of credit? In this post, we describe two separate ideas often associated with credit allocation. The first idea is that the Fed should not take credit risk, which taxpayers would ultimately have to bear. The second idea is that the Fed’s actions should not influence the flow of credit to particular sectors. We consider whether the Fed’s holdings of agency mortgage-backed securities (MBS) could ...
Liberty Street Economics
, Paper 20180806
FILTER BY year
FILTER BY Bank
Federal Reserve Bank of New York 93 items
Federal Reserve Bank of Kansas City 12 items
Board of Governors of the Federal Reserve System (U.S.) 5 items
Federal Reserve Bank of Atlanta 2 items
Federal Reserve Bank of Chicago 2 items
Federal Reserve Bank of Minneapolis 2 items
Federal Reserve Bank of Philadelphia 2 items
show more (2)
show less
FILTER BY Series
Liberty Street Economics 49 items
Staff Reports 37 items
Research Working Paper 10 items
Economic Policy Review 6 items
Finance and Economics Discussion Series 5 items
Working Papers 4 items
Economic Review 2 items
FRB Atlanta Working Paper 2 items
Working Paper Series 2 items
Current Issues in Economics and Finance 1 items
show more (5)
show less
FILTER BY Content Type
FILTER BY Author
McAndrews, James J. 17 items
Copeland, Adam 14 items
Cipriani, Marco 11 items
McCabe, Patrick E. 10 items
Nosal, Ed 8 items
McLaughlin, Susan 7 items
Skeie, David R. 7 items
Haslag, Joseph H. 6 items
Kim, Kyungmin 6 items
Parigi, Bruno 6 items
Potter, Simon M. 6 items
Schulhofer-Wohl, Sam 6 items
Davis, Isaac 5 items
Holscher, Michael 5 items
Lee, Michael Junho 5 items
Monnet, Cyril 5 items
Bhattacharya, Joydeep 4 items
Eisner, Emily 4 items
Garratt, Rod 4 items
Kovner, Anna 4 items
Ylva Søvik 4 items
Adenbaum, Jacob 3 items
Afonso, Gara 3 items
Begalle, Brian 3 items
Fecht, Falko 3 items
Leonard, Deborah 3 items
Orlando, Michael J. 3 items
Remache, Julie 3 items
Alkan, Leyla 2 items
Atalay, Enghin 2 items
Bech, Morten L. 2 items
Clark, Kevin 2 items
Fleming, Michael J. 2 items
Frost, Joshua 2 items
Huang, Kevin X. D. 2 items
Hubbs, David 2 items
Keane, Frank M. 2 items
Keister, Todd 2 items
LeSueur, Eric 2 items
Lipscomb, Laura 2 items
Logan, Lorie 2 items
McMorrow, Michael 2 items
Mills, David C. 2 items
Natalucci, Fabio M. 2 items
Palida, Ali 2 items
Selig, Ira 2 items
Walker, Michael 2 items
Wessel, Timothy 2 items
Wiggins, Heather 2 items
Adrian, Tobias 1 items
Afonso, Gara M. 1 items
Agueci, Paul 1 items
Ahn, Jung-Hyun 1 items
Amstad, Marlene 1 items
Antinolfi, Gaetano 1 items
Bignon, Vincent 1 items
Breton, Régis 1 items
Brickler, Lucinda 1 items
Bush, Ryan 1 items
Carapella, Francesca 1 items
Chakrian, Vic 1 items
Chapman, James T. E. 1 items
Duffie, Darrell 1 items
Egelhof, James 1 items
Freixas, Xavier 1 items
Hundtofte , Sean 1 items
Jurgilas, Marius 1 items
Kahn, Charles M. 1 items
Kahn, Robert Jay 1 items
Kirk, Adam 1 items
Krishnan, Neel 1 items
La Spada, Gabriele 1 items
Malone, Brendan 1 items
McCormick, Matthew 1 items
Minguez-Afonso, Gara 1 items
Mosser, Patricia C. 1 items
Orchinik, Reed 1 items
Pingitore, Kate 1 items
Prugar, Caroline 1 items
Riordan, Will 1 items
Rivas, Tyisha 1 items
Rose, Brett 1 items
Sarkar, Asani 1 items
Schreft, Stacey L. 1 items
Singh, Rajesh 1 items
Townsend, Robert M. 1 items
Von Thadden, Ernst-Ludwig 1 items
Weber, Warren E. 1 items
Weed, Phillip 1 items
Wolgemuth, Jennifer 1 items
Zinsmeister, Noah 1 items
Zobel, Patricia 1 items
von Thadden, Ernst-Ludwig 1 items
show more (89)
show less
FILTER BY Jel Classification
E5 21 items
E58 20 items
G1 16 items
E42 15 items
G21 9 items
G2 8 items
G23 6 items
E44 4 items
E52 4 items
G28 4 items
E4 3 items
G01 3 items
G14 3 items
G1;G2 3 items
G24 3 items
E59 2 items
G20 2 items
I18 2 items
L14 2 items
D25 1 items
D62 1 items
D82 1 items
E32 1 items
E40 1 items
E50 1 items
F29 1 items
G10 1 items
G12 1 items
G18 1 items
G29 1 items
G2;G1 1 items
G2;H00 1 items
G32 1 items
H21 1 items
show more (29)
show less
FILTER BY Keywords
Monetary policy 13 items
Banks and banking, Central 12 items
Payment systems 9 items
money market funds 9 items
monetary policy implementation 8 items
tri-party repo 8 items
Federal Reserve 7 items
Bank reserves 6 items
Interest rates 6 items
repo 6 items
runs 6 items
Bank liquidity 5 items
COVID-19 5 items
Federal Reserve System 5 items
Liquidity (Economics) 5 items
Repurchase agreements 5 items
federal funds market 5 items
liquidity 5 items
systemic risk 5 items
Friedman, Milton 4 items
GCF Repo 4 items
pandemic 4 items
Banks 4 items
Money 4 items
ample reserve supply 4 items
repo market 4 items
Credit 3 items
MBS 3 items
Open market operations 3 items
payments 3 items
Balance sheet 3 items
Interbank market 3 items
Tri-party repo market 3 items
balance sheet costs 3 items
bitcoin 3 items
fees 3 items
financial intermediation 3 items
gates 3 items
interest on reserves 3 items
Central bank balance sheet 2 items
DTCC 2 items
Deposit insurance 2 items
Fedwire 2 items
Financial markets 2 items
Fragility 2 items
Intermediation (Finance) 2 items
Labor contract 2 items
Money supply 2 items
Risk 2 items
Treasury securities 2 items
bilateral repo 2 items
financial fragility 2 items
haircuts 2 items
interest on excess reserves 2 items
investment banking 2 items
overnight RRP 2 items
reserve requirements 2 items
reverse repo 2 items
securities dealers 2 items
tri-party repo reforms 2 items
Cryptocurrency 2 items
Liquidity Provision 2 items
Money market 2 items
Preemptive Runs 2 items
Accounting 1 items
Assets (Accounting) 1 items
Bagehot 1 items
Bank capital 1 items
Bank competition 1 items
Bank deposits 1 items
Bank investments 1 items
Bank loans 1 items
Bank notes 1 items
Bank of England 1 items
Banking law 1 items
Banks and banking 1 items
Clearing of securities 1 items
Clearinghouses (Banking) 1 items
Crisis 1 items
Currency substitution 1 items
Debt Ceiling 2011 Money Market Mutual Funds European Debt Crisis Treasury securities 1 items
Discount window 1 items
Equilibrium (Economics) 1 items
European Central Bank 1 items
Fed Funds 1 items
Fed balance sheet 1 items
Federal Reserve Board 1 items
Federal Reserve Board and Federal Reserve System 1 items
Federal Reserve inventions 1 items
Fedwire Funds 1 items
Financial crises 1 items
Financial stability 1 items
Friedman rule 1 items
Households 1 items
Inflation (Finance) 1 items
Interest 1 items
Large balance sheet 1 items
Law and legislation 1 items
Lenders of last resort 1 items
Minimum Balance at Risk 1 items
Monetary theory 1 items
NAV 1 items
National banks (United States) 1 items
Overdrafts 1 items
Regulatory reform 1 items
Risk management 1 items
Settlement Fails 1 items
Settlement fail 1 items
Swiss National Bank 1 items
Treasury 1 items
Treasury security 1 items
account 1 items
asset purchases 1 items
asset-backed commercial paper 1 items
cash-in-the-market pricing 1 items
central bank 1 items
central bank collateral and counterparties 1 items
central bank operations 1 items
central bank reserves 1 items
classification 1 items
collateral 1 items
commitment 1 items
commodity money 1 items
competitiveness 1 items
concentration 1 items
credit allocation 1 items
crypto assets 1 items
cryptocurrencies 1 items
economy 1 items
exchange mechanism 1 items
facilities 1 items
financial crisis 1 items
fire sale 1 items
fire sales 1 items
holdup 1 items
information 1 items
information design 1 items
inter-dealer 1 items
inter-dealer markets 1 items
interest rate 1 items
intraday liquidity 1 items
large-value payment systems 1 items
lender of last resort 1 items
leverage ratio 1 items
liquidity regulation 1 items
liquidity-saving mechanism 1 items
liquidity-saving mechanisms 1 items
market functioning 1 items
monetary supply 1 items
money market mutual funds 1 items
money markets 1 items
moral hazard 1 items
mortgage-backed securities 1 items
network 1 items
nonconventional monetary policy 1 items
official sector interventions 1 items
overlapping generations 1 items
overnight reverse repurchases 1 items
payment networks 1 items
payment system 1 items
platforms 1 items
primary dealer credit facility (PDCF) 1 items
quarter end 1 items
real-time gross settlement 1 items
redemption restrictions 1 items
regulation 1 items
reinvestment 1 items
reinvestments 1 items
reserve 1 items
reserves 1 items
search 1 items
settlement 1 items
short-term funding 1 items
spatial separation 1 items
stressed outflows 1 items
token 1 items
triparty repo 1 items
unwind 1 items
wholesale funding 1 items
show more (204)
show less