Found 49 article(s) for author 'Jeremy Stein'

2013 Credit Markets Symposium: Jeremy C. Stein — Keynote

2013 Credit Markets Symposium: Jeremy C. Stein — Keynote. Jeremy Stein, April 19, 2013, Video. “Jeremy C. Stein, member of the Board of Governors of the Federal Reserve System, provided a keynote address on liquidity regulation at the seventh annual Credit Markets Symposium hosted by the Richmond Fed. The event convened market participants, risk management professionals, policymakers and regulators to discuss critical and emerging credit market topics at the Richmond Fed’s Charlotte, N.C. office April 18-19, 2013…” Link Verified October 12, 2014

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Regulating Large Financial Institutions

Regulating Large Financial Institutions. Jeremy Stein, April 17, 2013, Opinion. “Thank you. I’m delighted to be here, and want to thank the International Monetary Fund and the organizers of the conference for including me in a discussion of these important topics. I will focus my remarks today on the ongoing regulatory challenges associated with large, systemically important financial institutions, or SIFIs. In part, this focus amounts to asking a question that seems to be on everyone’s mind these days: Where do we stand with respect to fixing the problem of “too big to fail” (TBTF)?…” Link

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Overheating in Credit Markets: Origins, Measurement, and Policy Responses

Overheating in Credit Markets: Origins, Measurement, and Policy Responses. Jeremy Stein, February 7, 2013, Opinion. “Thank you very much. It’s a pleasure to be here. The question I’d like to address today is this: What factors lead to overheating episodes in credit markets? In other words, why do we periodically observe credit booms, times during which lending standards appear to become lax and which tend to be followed by low returns on credit instruments relative to other asset classes?…” Link Verified October 13, 2014

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Dollar Funding and the Lending Behavior of Global Banks

Dollar Funding and the Lending Behavior of Global Banks. Jeremy Stein, Victoria Ivashina, David Scharfstein, November 2012, Paper. “A large share of dollar-denominated lending is done by non-U.S. banks, particularly European banks. We present a model in which such banks cut dollar lending more than euro lending in response to a shock to their credit quality. Because these banks rely on wholesale dollar funding, while raising more of their euro funding through insured retail deposits, the shock leads to a greater withdrawal of dollar funding. Banks can borrow in euros and swap into dollars to make…” (May require user account or purchase) Link

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The Optimal Conduct of Monetary Policy with Interest on Reserves

The Optimal Conduct of Monetary Policy with Interest on Reserves. Jeremy Stein, January 2012, Paper. “In a world with interest on reserves, the central bank has two distinct tools that it can use to raise the short-term policy rate: it can either increase the interest it pays on reserve balances, or it can reduce the quantity of reserves in the system. We argue that by using both of these tools together, and by broadening the scope of reserve requirements, the central bank can simultaneously pursue two objectives: it can manage the inflation-output tradeoff using a Taylor-type rule, and it can regulate the externalities…” (May require user account or purchase) Link

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Monetary Policy as Financial-Stability Regulation

Monetary Policy as Financial-Stability Regulation. Jeremy Stein, March 2011, Paper. “This paper develops a model that speaks to the goals and methods of financial-stability policies. There are three main points. First, from a normative perspective, the model defines the fundamental market failure to be addressed, namely that unregulated private money creation can lead to an externality in which intermediaries issue too much short-term debt and leave the system excessively vulnerable to costly financial crises. Second, it shows how in a simple economy where commercial banks are the only lenders, conventional monetary-policy…” Link

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A Macroprudential Approach to Financial Regulation

A Macroprudential Approach to Financial Regulation. Jeremy Stein, Samuel Hanson, Winter 2011, Paper. “Many observers have argued that the regulatory framework in place prior to the global financial crisis was deficient because it was largely “microprudential” in nature. A microprudential approach is one in which regulation is partial equilibrium in its conception and aimed at preventing the costly failure of individual financial institutions. By contrast, a “macroprudential” approach recognizes the importance of general equilibrium effects, and seeks to safeguard the financial system as a whole. In the aftermath of the…” Link

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Securitization, Shadow Banking, and Financial Fragility

Securitization, Shadow Banking, and Financial Fragility. Jeremy Stein, September 24, 2010, Paper. “I describe how the market works: how pools of loans (for example, mortgages or credit-card and auto loans) are packaged and structured into ABS and how investors such as hedge funds, pension funds, and broker-dealer firms finance the acquisition of these ABS. […] I outline the economic forces that drive securitization; these include both an efficiency-enhancing element of risk-sharing and a less desirable element of banks trying to circumvent regulatory capital requirements.” Link

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Basel Needs a Firm Hand and Fewer Delays

Basel Needs a Firm Hand and Fewer Delays. Jeremy Stein, David Scharfstein, September 13, 2010, Op-Ed. “This weekend top central bankers announced agreement on Basel III, the new rules to enhance global capital standards for banks. The agreement, which will now be presented to the Group of 20 leading nations summit in Seoul this November, represents a significant and welcome increase in the capital that banks will be required to hold. However, worries that a rapid transition will cut lending and deepen the global recession mean the full increase will be delayed until 2019. These transitional…” (May require user account or purchase) Link

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The Squam Lake Report: Fixing the Financial System

The Squam Lake Report: Fixing the Financial System. John Campbell, Jeremy Stein, 2010, Book. “In the fall of 2008, fifteen of the world’s leading economists–representing the broadest spectrum of economic opinion–gathered at New Hampshire’s Squam Lake. Their goal: the mapping of a long-term plan for financial regulation reform. The Squam Lake Report distills the wealth of insights from the ongoing collaboration that began at these meetings and provides a revelatory, unified, and coherent voice for fixing our troubled and damaged financial markets. As an alternative to the patchwork...” (May require user account or purchase) Link

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