Publications

2011

 
 
Date Title Category
November 18, 2011 Richmond Fed Publication Looks at What Policymakers Can -- and Cannot -- Do to Create Jobs

With unemployment above 9 percent for more than two years, policymakers are grappling with how to create jobs. But many proposals, such as more fiscal stimulus, temporary tax breaks, and subsidies for private hiring, may not have the punch that their supporters hope. The cover story in the latest issue of Region Focus magazine looks at these and other job-creation concepts.

Publications
October 12, 2011 Richmond Fed's Economic Quarterly Analyzes the Effects of a Higher Inflation Rate Target

Bennett T. McCallum of Carnegie Mellon University and the National Bureau of Economic Research and a visiting scholar at the Richmond Fed discusses whether central banks should set higher inflation targets, such as 4 percent rather than 2 percent. Some economists have argued that because providing monetary stimulus when interest rates are at the zero lower bound is more difficult, central banks should consider increasing their inflation rate targets. McCallum notes that the benefits of providing additional monetary stimulus at the zero lower bound must be weighed against the costs of maintaining higher inflation outside of that scenario. To make that comparison, he explores pertinent research and theory, including Milton Friedman’s “optimal quantity of money” result, New Keynesian literature on resource misallocation caused by price stickiness that affects only some sellers, and the contention that the zero lower bound does not necessarily constitute a limit to monetary stimulus.

Publications
August 17, 2011 Richmond Fed Publication Looks at Housing Finance Abroad

In the wake of the crisis in U.S. housing markets, policymakers are considering how to reform mortgage finance. Many other developed nations intervene in housing finance to a lesser degree than the United States does—can their experiences provide some insight? The cover story in the latest issue of Region Focus magazine puts U.S. housing finance in an international context.

Publications
July 7, 2011 Richmond Fed's Economic Quarterly Focuses on Housing

In this housing-themed issue of Economic Quarterly, Sonya Ravindranath Waddell, Anne Davlin, and Edward Simpson Prescott of the Richmond Fed explore the role of house prices and labor market conditions in mortgage default. The authors focus their research on default rates in the Fifth District, looking in particular at Prince William County, Va., and Charlotte, N.C. Using a simple model of MSA fixed effects to examine variation in foreclosure rates, they find that declining house prices are a key factor in escalating subprime and prime foreclosure rates. The analysis explores how default rates vary among localities, revealing that the decision to default depends not only on national and statewide factors, but also on local conditions.

Publications
May 31, 2011 Long-Term Unemployment Focus of Richmond Fed's Annual Report

The Federal Reserve Bank of Richmond today released its 2010 Annual Report, which features the essay "The Rise in Long-Term Unemployment: Potential Causes and Implications."

Publications
May 19, 2011 Richmond Fed's Economic Quarterly Explores Taylor Rules and Multiple Equilibria

Since late 2008, both inflation and nominal interest rates have been extremely low in the United States. These facts have focused attention on ideas motivated by the theory discussed in several articles by economists Jess Benhabib, Stephanie Schmitt-Grohé, and Martín Uribe—in particular, that an active Taylor rule, together with a moderate inflation target, could have the unintended consequence of leading the economy to undesirably low inflation with a near-zero nominal interest rate.

Publications
April 21, 2011 Richmond Fed Publication Looks at What Drives Economic Thought

The recent financial crisis caught many economists by surprise. Were they studying the wrong things? If so, how did it come to be that way — and will the financial crisis bring about a fundamental change in economic research? The cover story in the latest issue of Region Focus puts these questions into historical context.

Publications
February 15, 2011 Richmond Fed Publication Examines Causes of Economic Recoveries

Economists have declared that the latest recession stretched from December 2007 to June 2009 -- making it the longest downturn since the Great Depression. Moreover, while the recovery is under way, weaknesses still persist, especially in the labor market. The cover story of the latest issue of Region Focus looks at the causes of recoveries and examines what policymakers can do to hasten them and which factors are often beyond their control.

Publications
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Richmond

Aaron Steelman
Publications Director
(804) 697-2658