Search Results

Quick Exits of Subprime Mortgages - Review

All holders of mortgage contracts, regardless of type, have three options: keep their payments current, prepay (usually through refinancing), or default on the loan. The latter two options terminate the loan. The termination rates of subprime mortgages that originated each year from 2001 through 2006 are surprisingly similar: about 20, 50, and 80 percent, respectively, at one, two, and three years after origination.

research.stlouisfed.org/publications/review/2009/03/02/quick-exits-of-subprime-mortgages

Bagehot on the Financial Crises of 1825…and 2008 - Economic Synopses

Bagehot’s principal message is that the first task of a central bank during a financial panic is to end the panic.

research.stlouisfed.org/.../2009/01/23/bagehot-on-the-financial-crises-of-1825and-2008

Systemic Risk and the Financial Crisis: A Primer - Review

How did problems in a relatively small portion of the home mortgage market trigger the most severe financial crisis in the United States since the Great Depression? Several developments played a role, including the proliferation of complex mortgage-backed securities and derivatives with highly opaque structures, high leverage, and inadequate risk management.

research.stlouisfed.org/.../review/2009/09/01/systemic-risk-and-the-financial-crisis-a-primer

British Banking in Crisis - Economic Synopses

The root of the problems of the British banks is the same as that of American banks: shaky mortgage-backed securities.

research.stlouisfed.org/publications/economic-synopses/2009/04/03/british-banking-in-crisis

Milton Friedman and U.K. Economic Policy: 1938-1979 - Review

Milton Friedman’s publications and commentaries became the subject of enormous publicity and scrutiny in the United Kingdom. This article analyzes the interaction of Milton Friedman and U.K. economic policy from 1938 to 1979.

research.stlouisfed.org/.../review/2009/10/21/milton-friedman-and-u-k-economic-policy-1938-1979

The Commercial Paper Market, the Fed, and the 2007-2009 Financial Crisis - Review

Since its inception in the early nineteenth century, the U.S. commercial paper market has grown to become a key source of short-term funding for major businesses, with issuance averaging over $100 billion per day. In the fall of 2008, the commercial paper market achieved national prominence when increasing market stress caused some to fear that, given its size and importance, the market’s failure would sharply worsen the recession.

research.stlouisfed.org/.../the-commercial-paper-market-the-fed-and-the-2007-2009-financial-crisis

Parsing Shocks: Real-Time Revisions to Gap and Growth Projections for Canada - Review

The output gap—the deviation of output from potential output—has played an important role in the conduct of monetary policy in Canada. This article reviews the Bank of Canada’s definition of potential output, as well as the use of the output gap in monetary policy.

research.stlouisfed.org/.../