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Speech
In Conversation: Mary C. Daly with UC Berkeley’s Fisher Center for Real Estate & Urban Economics
Presentation at UC Berkeley’s Fisher Center for Real Estate & Urban Economics, Berkeley, California, October 21, 2022, by Mary C. Daly, President and Chief Executive Officer, Federal Reserve Bank of San Francisco.
Briefing
Central Bank Digital Currencies and Regulatory Alternatives: the Case for Stablecoins
Central bank digital currencies (CBDCs) have been in the spotlight as the Federal Reserve and other central banks explore introducing them. At the same time, stablecoins are also growing in popularity, and many people including politicians and regulators have started discussing how to properly regulate their issuance and use. In this article, I discuss the question of whether a regulatory framework for stablecoins — where regulated banks can issue stablecoins backed 100 percent by deposits at the central bank — could serve as an alternative to issuing CBDCs.
Working Paper
How sensitive is the economy to large interest rate increases? Evidence from the taper tantrum
The “taper tantrum” of 2013 represents one of the largest monetary policy shocks since the 1980s. During this episode, long-term interest rates spiked 100 basis points—a move unintentionally induced by policymakers. However, this had no observable negative effect on the overall U.S. economy. Output, employment, and other important variables, all performed either in line with or better than consensus forecasts, often improving considerably relative to their earlier trends. We conclude that, from low levels, a 100 basis point increase in long-term interest rates is probably too small to ...