ECONOMY
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Economic Capital: A Better Measure of Bank Failure?
Beverly Hirtle and Matthew C. Plosser Bank failures and distress can be costly to the economy, causing losses to creditors…
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Banking System Vulnerability: 2025 Update
Matteo Crosignani, Thomas Eisenbach, and Fulvia Fringuellotti As in previous years, we provide in this post an update on the…
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Financial Intermediaries and Pressures on International Capital Flows
Linda S. Goldberg and Samantha Hirschhorn Global factors, like monetary policy rates from advanced economies and risk conditions, drive fluctuations…
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Reading the Panic: How Investors Perceived Bank Risk During the 2023 Bank Run
Natalia Fischl-Lanzoni, Martin Hiti, and Asani Sarkar The bank run that started in March 2023 in the U.S. occurred at…
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A Historical Perspective on Stablecoins
Stephan Luck Digital currencies have grown rapidly in recent years. In July 2025, Congress passed the “Guiding and Establishing National…
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Dutch Treat: The Netherlands’ Exorbitant Privilege in the Eighteenth Century
Stein Berre and Asani Sarkar The term “exorbitant privilege” emerged in the 1960s to describe the advantages derived by the…
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Consumption Sensitivity of Uncertain Households
Davide Melcangi and Gizem Kosar Uncertainty is a key component of everyday economic decisions of consumers and, perhaps not surprisingly,…
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The Shadow Value of Central Bank Lending
Tomas Jankauskas, Ugo Albertazzi, Lorenzo Burlon, and Nicola Pavanini After the Great Financial Crisis, the European Central Bank (ECB) extended…
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A Danger to Self and Others: Consequences of Involuntary Hospitalization
Natalia Emanuel, Pim Welle, and Valentin Bolotnyy Every state in the country has a law permitting involuntary hospitalization if a…
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The Rise of Sponsored Service for Clearing Repo
Adam Copeland and R. Jay Kahn Recently instituted rule amendments have initiated a large migration of dealer-to-client Treasury repurchase trades…
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