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Fourth Quarter 2023

Posted 2023-10-02

Fiscal Dominance and the Return of Zero-Interest Bank Reserve Requirements

by Charles W. Calomiris

As a matter of arithmetic, the trends of US government debt and deficits will eventually result in an outrageously high government debt-to-GDP ratio. But when exactly will the United States hit the constraint of infeasibility and how exactly will policy adjust to it? 

Posted 2023-10-02

The COVID-19 Pandemic and Inflation: Lessons from Major US Wars

by Kevin L. Kliesen and David C. Wheelock

US fiscal and monetary policies implemented during the COVID-19 pandemic have been likened to those often adopted during wars. This article compares macroeconomic policies of the pandemic period with those of major US wars since the Civil War. 

Posted 2023-10-02

Demographic Disparities in COVID-19 Disruptions: What Has Shaped Them?

by Violeta A. Gutkowski

This article uses the Community Impact Survey implemented by the Federal Reserve System in 2021 to identify COVID-19 disruptions on low- to moderate-income communities. I find that communities that were primarily of Color were more likely to be significantly disrupted by COVID-19 than White communities.

Posted 2023-10-02

An Introduction to Zero-Knowledge Proofs in Blockchains and Economics

by Aleksander Berentsen, Jeremias Lenzi, and Remo Nyffenegger

With a zero-knowledge proof (ZKP), a party can prove that a statement is true without revealing any information except for whether it is indeed true or not. The obvious benefit is privacy since the prover does not need to reveal any additional information, and the second benefit is that it can significantly reduce the cost of verifying the correctness of a statement.