Liberty Street Economics

Viral V.

Rajashri Chakrabarti, Thu Pham, Beck Pierce, and Maxim Pinkovskiy In March 2026, energy prices surged to a four-year high, driven by the Iranian closure of the Strait of Hormuz amid the ongoing conflict in the Middle East.

Hunter L.

Rajashri Chakrabarti, Thu Pham, Beck Pierce, and Maxim L.

Rajashri Chakrabarti, Thu Pham, Beck Pierce, and Maxim L.

Sergio Correia, Stephan Luck, and Emil Verner Do banks fail because of runs or because they become insolvent?

Sophia Cho and John C.

Ali Hashim, Gizem Kosar, and Wilbert van der Klaauw The rapid spread of generative AI (AI) tools is reshaping the workplace at a remarkable rate.

Hyeyoon Jung and Jaehoon (Kyle) Jung Housing is the largest component of assets held by households in the United States, totaling $48 trillion in 2025.

Hunter L.

Adam Copeland and Owen Engbretson The Federal Reserve’s 2022-23 tightening cycle involved the use of two monetary policy tools: changes in administrative rates and changes in the size of its balance sheet.

Henry Dyer and Michael J.

Lily Gordon and Lee Seltzer Editor’s note: The fifth and sixteenth paragraphs have been revised for technical accuracy.

Jacob Goss and Daniel Mangrum Editor’s Note: The chart notes for the first chart have been updated to correct errors in how we labeled the trend line colors.

Thomas Klitgaard China has spent considerable government resources to develop advanced electric technology industries, such as those that produce electric vehicles, lithium batteries, and solar panels.

Marco Del Negro, Ibrahima Diagne, Keshav Dogra, Elena Elbarmi, Donggyu Lee, and Michael Pham This post presents an update of the economic forecasts generated by the Federal Reserve Bank of New York’s dynamic stochastic general equilibrium (DSGE) model.

Jaison R.

Jaison R.

Jaison R.

Marco Del Negro, Elena Elbarmi, and Michael Pham In this post we provide a measure of “global” r* using data on short- and long-term yields and inflation for several countries with the approach developed in “Global Trends in Interest Rates” (Del Negro, Gi…

Tomas Jankauskas Understanding how short- and long-term assets are priced is one of the fundamental questions in finance.

Rachel Schuh Why do workers still segregate by sex across occupations, industries, and firms?

Martin Almuzara and Geert Mesters Data releases for inflation have been scarce over the past four months due to the government shutdown.

Mary Amiti, Chris Flanagan, Sebastian Heise, and David E.

Andrew F.

Simone Lenzu Inflation does not always respond to cost and demand pressures in the same way.

Simone Lenzu The relationship between inflation and real economic activity has long been central to debates in macroeconomics and monetary policy.

Will Aarons and Asani Sarkar The New York Fed’s Economic Heterogeneity Indicators (EHIs) aim to study macroeconomic outcomes experienced by various groups of people and businesses.

Rajashri Chakrabarti, Thu Pham, Beck Pierce, and Maxim L.

Danial Lashkari It is common for price measures to consider changes in quality.

Rajashri Chakrabarti, Thu Pham, Beck Pierce, and Maxim L.

Rajashri Chakrabarti, Thu Pham, Beck Pierce, and Maxim L.

Sebastian Heise, Jeremy Pearce, and Jacob P.

Pierre Coster, Julian di Giovanni, and Isabelle Mejean The European Union has been an early adopter of carbon policies, with the introduction of the EU Emissions Trading System (ETS) in 2005.

Pierre Coster, Julian di Giovanni, and Isabelle Mejean Several countries have implemented a carbon tax or cap-and-trade system to establish high carbon prices and create a disincentive for the use of fossil fuels.

Ufuk Akcigit, Harun Alp, Jeremy Pearce, and Marta Prato Why do some entrepreneurs drive economic growth while others do not?

Maureen Egan Each year brings a new set of economic challenges: In 2025, major areas of focus included tariffs and trade tensions, as well as the financial pressures facing younger adults.

Sergio Correia, Tiffany Fermin, Stephan Luck, and Emil Verner Call Reports are regulatory filings in which commercial banks report their assets, liabilities, income, and other information.

Kristian S.

Kinda Hachem Why does the banking industry remain prone to large and costly disruptions despite being so heavily regulated?

Marco Del Negro, Ibrahima Diagne, Keshav Dogra, Elena Elbarmi, Donggyu Lee, and Michael Pham This post presents an update of the economic forecasts generated by the Federal Reserve Bank of New York’s dynamic stochastic general equilibrium (DSGE) model.

Rod Garratt and Michael Junho Lee Following the recent passage of legislation in the U.S., payment stablecoins seem to be on the brink of wider-scale adoption and explosive growth in market capitalization.

Wändi Bruine de Bruin, Keshav Dogra, Sebastian Heise, Edward S.

Richard Crump, Keshav Dogra, and Dennis Kongoli A 2012 Liberty Street Economics post noted that U.S. monetary policy exhibits a surprising degree of seasonal behavior: over the 1987-2008 period, the Federal Reserve was much more likely to lower interest r…

Nicola Cetorelli and Saketh Prazad In a previous post, we documented how, over the past five decades, the typical U.S. bank has evolved from an entity mainly focused on deposit taking and loan making to a more diversified conglomerate also incorporating a…

Nicola Cetorelli and Saketh Prazad In light of the rapid growth of nonbank financial institutions (NBFIs), many have argued that bank-led financial intermediation is on the decline, based on the traditional notion that banks operate to take in deposits and

Michael J.

Beverly Hirtle and Matthew C.

Matteo Crosignani, Thomas Eisenbach, and Fulvia Fringuellotti As in previous years, we provide in this post an update on the vulnerability of the U.S. banking system based on four analytical models that capture different aspects of this vulnerability.

Tomas Jankauskas, Ugo Albertazzi, Lorenzo Burlon, and Nicola Pavanini After the Great Financial Crisis, the European Central Bank (ECB) extended its monetary policy toolbox to include the use of long-term loans to banks at interest rates close to zero or…