Search Results
Showing results 1 to 10 of approximately 10.
(refine search)
Journal Article
President's Message: Reassessing Monetary Policy at the Zero Lower Bound
What should monetary policymakers do when the policy rate is effectively at zero? Several colleagues and I have released a working paper that we hope will contribute to the ongoing debate on this question.
Working Paper
Finance and Inequality : The Distributional Impacts of Bank Credit Rationing
We analyze reductions in bank credit using a natural experiment where unprecedented flooding differentially affected banks that were more exposed to flooded regions in Pakistan. Using a unique dataset that covers the universe of consumer loans in Pakistan and this exogenous shock to bank funding, we find two key results. First, banks disproportionately reduce credit to new and less-educated borrowers, following an increase in their funding costs. Second, the credit reduction is not compensated by relatively more lending by less-affected banks. The empirical evidence suggests that adverse ...
Working Paper
The Intangible Gender Gap: An Asset Channel of Inequality
We propose an "asset channel of inequality" that contributes to gender inequities. We establish that industries with low (high) gender pay gaps have high (low) shares of tangible assets. Because asset tangibility determines firms' ability to collateralize assets and borrow, credit conditions affect industries differently. We show that credit expansions further reduce the pay gap in low-pay-gap industries while leaving it unaffected in high-pay-gap industries, making low-pay-gap industries more appealing for women. Consequently, gender sorting across industries increases, which then cements ...
Speech
The Federal Reserve’s Recent Actions to Support the Flow of Credit to Households and Businesses
Remarks before the Foreign Exchange Committee, Federal Reserve Bank of New York, New York City.
Working Paper
Credit access and relational contracts: An experiment testing informational and contractual frictions for Pakistani farmers
https://www.federalreserve.gov/econres/ifdp/credit-access-and-relational-contracts.htm
Economic Uncertainty, Rising Interest Rates Challenge Banks
Elevated funding costs and tightening credit markets point to the need for bankers and bank supervisors to remain vigilant.
Speech
Credit growth and economic activity after the Great Recession
Remarks at the Economic Press Briefing on Student Loans, Federal Reserve Bank of New York, New York City
Working Paper
Corporate stress and bank nonperforming loans: Evidence from Pakistan
Using detailed administrative Pakistani credit registry data, we show that banks with low leverage ratios are both significantly slower and less likely to recognize a loan as nonperforming than other banks that lend to the same firm. Moreover, we find suggestive evidence that this lack of recognition impedes loan curing, with banks with low leverage ratios reporting significantly higher final default rates than other banks for the same borrower (even after controlling for differences in loan terms). Our empirical findings are consistent with the theoretical prediction that classifying a ...
Working Paper
Domestic Debt and Sovereign Defaults
This paper examines how domestic holdings of government debt affect sovereign default risk and government debt management. I develop a dynamic stochastic general equilibrium model with both external and domestic debt that endogenously generates output contraction upon default. Domestic holdings of government debt weaken investors' balance sheets and induce a contraction of credit and output upon default. I calibrate the model to the Argentinean economy and show that the model reproduces key empirical moments. Introducing domestic debt also yields relevant normative implications. While ...
Briefing
Introducing the Credit Market Sentiment Index
In a forthcoming paper, we develop a new signal-extraction statistical model to estimate a factor summarizing conditions in U.S. credit markets. The factor provides a real-time gauge of "sentiment" in credit markets, above and beyond that attributable to contemporaneous economic conditions. Fluctuations in the credit market sentiment factor are associated with strong asymmetric and nonlinear effects on economic activity, depending not only on the magnitude and sign of a credit market sentiment shock but also on the current economic conditions.