Recent trends in corporate leverage
What you don’t know can hurt you: keeping track of risks in the financial system
The financial crisis of 2007-2008 left in its wake new responsibilities for regulators to monitor the economy for risks to financial stability. The new task of monitoring financial stability includes tracking the risks of financial instruments and learning where these risks are located within the financial marketplace. One way to do this is to track the quantities of financial instruments and which institutions hold them. In this article, Leonard Nakamura discusses some limitations of the current data and the current data framework and the extent to which we can use the Flow of Funds for ...
Identification and the effects of monetary policy shocks
The United States international asset and liability position: a comparison of flow of funds and Commerce department presentations
This paper presents a detailed description of how the Flow of Funds' foreign sector asset and liability account is derived. The statistics found in the Flow of Funds' (FOF) foreign sector are related to the Commerce Department's U.S. International Investment Position (IIP) tabulation; a survey of information sources for the foreign sector shows how these data are largely reconcilable with the Commerce Department's IIP. A second section of the paper, based on these statistics, offers some observations about recent developments in the United States' net international investment position.
The determinants of international flows of U.S. currency
This paper examines the determinants of cross-border flows of U.S. dollar banknotes, using a new panel data set of bilateral flows between the United States and 103 countries from 1990 to 2007. We show that a gravity model explains international flows of currency as well as it explains international flows of goods and financial assets. We find important roles for market size and transaction costs, consistent with the traditional gravity framework, as well as roles for financial depth, the behavior of the nominal exchange rate, the size of the informal sector, the amount of remittance credits, ...
Deposits and demographics?
Credit flows to businesses during the Great Recession
During the last recession, credit flows suffered their worst slowdown since World War II. A look at selected credit market measures gives some insight into why the slowdown was so severe. The measures also show that in spite of the size of the shock, credit flows actually recovered extremely quickly?a testament to the depth of the credit markets, and possibly the interventions that were taken to support them.