Macroprudential Policy Interlinkages
By Johannes Matschke
RWP 21-10, September 2021

Emerging markets can benefit from considering the interaction of macroprudential policies across both domestic and international financial markets.

The Effect of Immigration on Local Labor Markets: Lessons from the 1920s Border Closure
By Ran Abramitzky, Philipp Ager, Leah Boustan, External LinkElior Cohen and Casper W. Hansen
RWP 21-09, September 2021

The 1920s U.S. border closure substantially reduced immigration, with uneven effects on regional economies.

Capital Controls and the Global Financial Cycle
By Marina Lovchikova and Johannes Matschke
RWP 21-08, September 2021

Emerging markets have an incentive to tighten capital inflow controls during periods of international financial distress.

Shadow Insurance? Money Market Fund Investors and Bank Sponsorship
By Stefan Jacewitz, Haluk Unal, and Chengjun Wu
RWP 21-07, August 2021

Investors in prime institutional money market funds paid higher expense ratios and received lower net yields as compensation for implicit bank guarantees and indirect access to the federal bank safety net.

Financial Constraints, Sectoral Heterogeneity, and the Cyclicality of Investment
By Cooper Howes
RWP 21-06, August 2021

Following monetary policy contractions, firms with financial flexibility take advantage of declining prices for capital goods by increasing their investment.

Production and Inventory Dynamics under Ambiguity Aversion
By Yulei Luo, Jun Nie, Xiaowen Wang and Eric R. Young
RWP 21-05, July 2021

Incorporating ambiguity aversion into models of production and inventory dynamics can help explain firms’ investment behavior.

From Deviations to Shortfalls: The Effects of the FOMC’s New Employment Objective
By Brent Bundick and Nicolas Petrosky-Nadeau
RWP 21-04, July 2021

A monetary policy that stabilizes employment shortfalls, rather than deviations in employment from its maximum level, leads to higher inflation and higher employment on average.

Government Loan Guarantees during a Crisis: The Effect of the PPP on Bank Lending and Profitability
By W. Blake Marsh and Padma Sharma
RWP 21-03, June 2021

By providing small and midsized firms with forgivable bank loans, the PPP offset declines in bank lending to businesses and protected banks against credit losses.

The Size of U.S. Metropolitan Areas
By McKenzie Humann and Jordan Rappaport
RWP 21-02, May 2021

The gradual unwinding of the Federal Reserve’s balance sheet from 2017 to 2019 tightened financial conditions, though this tightening did not simply manifest as a reversal of the effects of the original balance sheet expansion.

Local Projections, Autocorrelation, and Efficiency
By Amaze Lusompa
RWP 21-01, March 2021

A more accurate estimator of causal effects may help economists better evaluate how monetary policy affects the economy.