Today we are fortunate to be able to present a guest contribution written by Mark Copelovitch (University of Wisconsin – Madison) and David Singer (MIT).
Category Archives: financial markets
Guest Contribution: “Charting This Crisis”
Today, we are fortunate to present a guest contribution written by Ashoka Mody, Charles and Marie Visiting Professor in International Economic Policy, Woodrow Wilson School, Princeton University. Previously, he was Deputy Director in the International Monetary Fund’s Research and European Departments. He is the author of “EuroTragedy: A Drama in Nine Acts,” recently updated with a new afterword.
Recession Probability for Term Spread thru 2/24
If the last few days of February is like the rest, then recession probabilities are up. Using a plain-vanilla probit model of recession based on the10yr-3mo spread, the following recession probabilities are obtained.
10yr-3mo Treasury Spread and TIPS 10yr
Figure 1 shows both of these at monthly frequency, with February data through 2/21.
What Determines the Strength of Interest Rate Linkages between Countries?
Decisions regarding the trilemma, but also choices regarding macroprudential policies have an impact. From the revised version of Joshua Aizenman, Menzie Chinn and Hiro Ito, “Financial Spillovers and Macroprudential Policies” (forthcoming Open Economies Review):
Required Reading on the History of (Macro)economic Thought
Why was the financial crisis of 2008 so surprising to so many macroeconomists (but from my experience, a little less so for international finance economists familiar with financial crises in emerging markets…)? From the conclusion to George Akerlof’s “What They Were Thinking Then: The Consequences for Macroeconomics during the Past 60 Years” in the latest JEP.
Guest Contribution: “How Are Uncertainty and the Uncovered Interest Parity Condition Related?”
Today, we are pleased to present a guest contribution written by N.R. Ramirez-Rondan and Marco E. Terrones (Universidad del Pacifico).
The return of the Fed’s balance-sheet policies
The Federal Reserve has increased the size of its balance sheet by a third of a trillion dollars over the last 15 weeks, returning to tools that a short while ago we thought it had abandoned. But the Fed’s current goal in these operations is quite different from what we had seen earlier.
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An Event Study: Trade Truce-Part 1, or Not?
See if you can find when Trump makes his statement about trade negotiations with China. Winning!
Guest Contribution: “Yet Another Look at the Recent Inversion of the Yield Curve”
Today we are fortunate to have a guest contribution written by Kim Kowalewski, formerly Senior Adviser in the Macroeconomic Analysis Division of the Congressional Budget Office.