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Financial stability

 

  • Moving up, falling back or staying still: How income mobility in Texas differs by race, ethnicity

    This article analyzes how different demographic groups can climb the income ladder and move into higher-income groups.

  • Income disparities between white and Hispanic and Black Texans seen from 2005 to 2019

    In the United States, a great deal of research has documented income disparities across racial and ethnic groups over time. If left unaddressed, those disparities could act as a headwind to future economic growth, especially given the country’s increasingly diverse population.

  • Economic Inclusion Fireside Chat: Michael Weber and Jeff Fuhrer on an inclusive economy

    Michael Weber, an associate professor at the University of Chicago Booth School of Business, and Jeff Fuhrer, a fellow at the Brookings Institution and the Eastern Bank Foundation, provided insight into the importance of thinking about diverse communities in policymaking at the inaugural Economic Inclusion Seminar Series Fireside Chat.

  • Widening gap between rich and poor poses challenge to U.S.

    Economist Jeffrey Fuhrer, a nonresident fellow at the Brookings Institution and former Boston Fed director of research, discusses the nation’s income and wealth gaps and offers proposals to close them. Fuhrer’s recently published book, “The Myth that Made Us,” explores inequalities in the nation’s economic system.

  • Fed credibility enhanced when public finds policymakers relatable

    University of Chicago Booth School associate professor Michael Weber explains how audiences are especially receptive to monetary policy messaging delivered by Fed officials whose ethnic or gender background is similar to theirs and outlines the broader implications of such enhanced credibility.

  • Research Department Working Papers

    Deposit Convexity, Monetary Policy and Financial Stability

    Banks and researchers conventionally model the response of deposit interest rates to market interest rates as constant, implying that deposits have nearly constant duration. Contrary to this standard assumption, this paper shows empirically that the “beta” of deposit rates to market rates increases as market rates rise, causing the duration of deposits to fall.

  • Research Department Working Papers

    High-Yield Debt Covenants and Their Real Effects

    Contrary to the prevailing belief that incurrence covenants offer limited protection for creditors, this paper reveals a significant and sudden decline in investment upon triggering these covenants.

  • Labor market recovery and wage growth unequal across age groups after pandemic

    The COVID-19 pandemic severely depressed U.S. labor force participation. Although the pandemic has eased, people ages 20–24 and those over 55 have been less likely to return to the workforce.

  • Research Department Working Papers

    Financial Shocks in an Uncertain Economy

    This paper focuses on some of the lessons we have learned over the years: (i) uncertainty and tail risk have cyclical variation; (ii) financial shocks can have a significant effect on macroeconomic outcomes; (iii) the impact of shocks is stronger in periods of high volatility.

  • EITC increases labor force participation among married Black mothers

    Research has shown that the Earned Income Tax Credit, the largest of the U.S. antipoverty programs, boosts labor force participation among single mothers. It does not, in the aggregate, have the same effect on married mothers.