Found 43 article(s) for author 'Jeremy Stein'

Banks as Patient Fixed Income Investors

Banks as Patient Fixed Income Investors. Samuel G. Hanson, Andrei Shleifer, Jeremy Stein, August 2014, Paper. “We examine the business model of traditional commercial banks in the context of their coexistence wit shadow banks. While both types of intermediaries create safe “money-like” claims, they go about this in very different ways. Traditional banks create safe claims with a combination of costly equity capital and fixed income assets that allows their depositors to remain “sleepy”: They do not have to pay attention to transient fluctuations in the mark-to-market value of bank assets. In contrast…” Link Verified October 18, 2014

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Libor Needs More Competition

Libor Needs More Competition. Jeremy Stein, July 22, 2014, Opinion. “Two years after news broke that traders at the world’s largest banks had been manipulating interest-rate indicators used to value hundreds of trillions of dollars in securities and derivatives, a crucial question remains: How can we restore confidence in benchmarks on which the financial system depends the way the rest of us depend on tap water? Today, an international group of regulators known as the Financial Stability Board issued two reports — to which we contributed — that offer what we see as viable answers…” Link Verified October 11, 2014

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Jeremy Stein: The exclusive exit interview

Jeremy Stein: The exclusive exit interview. Jeremy Stein, July 9, 2014, Opinion. “Harvard economist Jeremy Stein made waves as a governor at the Federal Reserve when he suggested last year that the nation’s central bank should consider using monetary policy to pop financial bubbles and combat instability. He stepped down from the Fed in May, but the debate he helped start rages on among the world’s top economists. In his first public interview since leaving the Fed, Stein talks to us about why there’s no free lunch when central banks try to use broad new regulatory powers to stabilize the financial system…” Link Verified October 11, 2014

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Challenges for Monetary Policy Communication

Challenges for Monetary Policy Communication. Jeremy Stein, May 6, 2014, Opinion. “The Money Marketeers have a long tradition of hosting policymakers and fostering informed public discussion, and I am delighted to join in this tradition. Last month I announced that I would be leaving the Federal Reserve Board at the end of May in order to return to my teaching position at Harvard. So I would like to take a moment to express my gratitude to my many colleagues at the Board and around the Federal Reserve System who have taught me so much…” Link Verified October 12, 2014

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Monetary Policy and Long-Term Real Rates

Monetary Policy and Long-Term Real Rates. Samuel G. Hanson, Jeremy Stein, April 2014, Paper. “Changes in monetary policy have surprisingly strong effects on forward real rates in the distant future. A 100 basis point increase in the two-year nominal yield on an FOMC announcement day is associated with a 42 basis point increase in the ten-year forward real rate. This finding is at odds with standard macro models based on sticky nominal prices, which imply that monetary policy cannot move real rates over a horizon longer than that over which all prices in the economy can readjust…” Link

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Incorporating Financial Stability Considerations into a Monetary Policy Framework

Incorporating Financial Stability Considerations into a Monetary Policy Framework. Jeremy Stein, March 21, 2014, Opinion. “I would like to talk today about how one might explicitly incorporate financial stability considerations into a monetary policy framework. Doing so involves tackling two questions–one that is relatively easy and one that is much harder. The easier question is, should financial stability concerns, in principle, influence monetary policy decisions?…” Link

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Comments on “Market Tantrums and Monetary Policy”

Comments on “Market Tantrums and Monetary Policy”. Jeremy Stein, February 28, 2014, Opinion. “I am delighted to have the opportunity to discuss the paper “Market Tantrums and Monetary Policy.” It is timely, provocative, and extremely insightful. Let me start by summarizing what I take to be the paper’s main messages. First, the authors argue that policymakers should pay careful attention not just to measures of leverage in the banking and shadow banking sectors, but also to the financial stability risks that might arise from the behavior of unlevered asset managers…” Link Verified October 12, 2014

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Banks as Patient Debt Investors

Banks as Patient Debt Investors. Jeremy Stein, January 3, 2014, Opinion. “I’m delighted to be speaking to this group; it’s really an honor. Given the audience–and because I may never again have so many economists in front of me at one time–I thought that rather than giving a policy-oriented speech, I would test-drive a new research project. The project is ongoing joint work with Samuel Hanson and Andrei Shleifer of Harvard and with Robert Vishny of the University of Chicago…” Link Verified October 12, 2014

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Lean, Clean, and In-Between

Lean, Clean, and In-Between. Jeremy Stein, October 18, 2013, Opinion. “Thank you. The theme of this conference is, “Lessons from the Financial Crisis for Monetary Policy.” Given the opportunity to speak about this topic, my first thought was that I should organize my remarks around the familiar “lean versus clean” debate. The traditional, pre-crisis framing of the question went something like this: Should policymakers rely on ex ante measures to lean against potential financial imbalance…” Link Verified October 12, 2014

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The Fire-Sales Problem and Securities Financing Transactions

The Fire-Sales Problem and Securities Financing Transactions. Jeremy Stein, October 4, 2013, Opinion. “Thank you. It’s a pleasure to be here at this workshop. In an effort to provide some broad framing for the sessions to follow, I thought I would try to do three things in my opening remarks. First, I will briefly discuss the welfare economics of fire sales. That is, I will try to make clear when a forced sale of an asset is not just an event that leads to prices being driven below long-run fundamental values, but also one that involves a market failure…” Link Verified October 12, 2014

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