{"title":"Housing and Other Price Bubbles: The Buildup, the Burst, and the Impact","authors":"G. Kaufman, A. Malliaris, R. W. Nelson","doi":"10.1142/9789813236592_0008","DOIUrl":"https://doi.org/10.1142/9789813236592_0008","url":null,"abstract":"This chapter argues that asset price bubbles need to be re-examined carefully because their adverse impact on an economy has often been very substantial. The bursting of the housing bubble in 2006 and its consequences on triggering the near global financial crisis is such example. After reviewing the general literature on asset bubbles on housing and stock markets bubbles and their impacts on an economy, we contribute to the literature by proposing a fundamental housing price model that allows us to estimate the magnitude of residential housing bubbles and their starting and ending dates. The duration and the magnitude of the U.S. housing bubble in the early 2000s are estimated under alternative assumptions about the nature of forces affecting the demand for housing and housing prices.","PeriodicalId":367486,"journal":{"name":"Innovative Federal Reserve Policies During the Great Financial Crisis","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2018-07-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"130247090","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"The Shadow Financial Regulatory Committee’s Views on Systemic and Payments System Risks","authors":"R. Eisenbeis","doi":"10.1142/9789813236592_0010","DOIUrl":"https://doi.org/10.1142/9789813236592_0010","url":null,"abstract":"","PeriodicalId":367486,"journal":{"name":"Innovative Federal Reserve Policies During the Great Financial Crisis","volume":"26 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2018-07-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"122635290","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"The Costs and Benefits of Shrinking the Fed’s Discount Window","authors":"H. Rosenblum","doi":"10.1142/9789813236592_0006","DOIUrl":"https://doi.org/10.1142/9789813236592_0006","url":null,"abstract":"","PeriodicalId":367486,"journal":{"name":"Innovative Federal Reserve Policies During the Great Financial Crisis","volume":"16 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2018-07-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"132186300","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Macroprudential Regulation and Supervision: Different Strokes for Different Folks","authors":"G. Garcia","doi":"10.1142/9789813236592_0005","DOIUrl":"https://doi.org/10.1142/9789813236592_0005","url":null,"abstract":"","PeriodicalId":367486,"journal":{"name":"Innovative Federal Reserve Policies During the Great Financial Crisis","volume":"91 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2018-07-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"127333883","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Monetary Policy with a Large Balance Sheet: Lessons from the Financial History of the United States","authors":"E. Tallman","doi":"10.1142/9789813236592_0002","DOIUrl":"https://doi.org/10.1142/9789813236592_0002","url":null,"abstract":"This paper examines how monetary policy implementation with a large balance sheet relies upon interest on excess reserves. The paper then examines the Federal Reserve System balance sheet from its inception in 1914 until the end of 2015. Noting periods when it either increased rapidly or was large relative to activity measures, we focus on the onset of the U.S. participation in World War One (WWI), the Great Depression, and the World War Two (WWII) experience. The rapid reduction in the Fed balance sheet following WWI was associated with a sharp real contraction, whereas the more gradual decline that followed WWII was associated with better real outcomes. The current Federal Reserve balance sheet will likely contract by between $1 trillion to $1.75 trillion to “normalize,” and can contract gradually by allowing securities to mature without reinvestment. The large balance sheet might compromise policymaking if it persists indefinitely. Effective monetary policy could be threatened if, through a misunderstanding, interest on excess reserves was made unavailable. In a scenario analysis, the paper shows how Federal Reserve interest rate control would be compromised and force a sharp contraction of Federal Reserve credit, a speed more rapid than the unfavorable WWI credit contraction.","PeriodicalId":367486,"journal":{"name":"Innovative Federal Reserve Policies During the Great Financial Crisis","volume":"61 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2018-07-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"132256690","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Douglas D. Evanoff, George G. Kaufman, A. Malliaris
{"title":"FRONT MATTER","authors":"Douglas D. Evanoff, George G. Kaufman, A. Malliaris","doi":"10.1142/9789813236592_fmatter","DOIUrl":"https://doi.org/10.1142/9789813236592_fmatter","url":null,"abstract":"","PeriodicalId":367486,"journal":{"name":"Innovative Federal Reserve Policies During the Great Financial Crisis","volume":"87 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2018-07-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"116432195","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Lessons from the U.S. Experience with Quantitative Easing","authors":"Eric S. Rosengren","doi":"10.1142/9789813236592_0004","DOIUrl":"https://doi.org/10.1142/9789813236592_0004","url":null,"abstract":"","PeriodicalId":367486,"journal":{"name":"Innovative Federal Reserve Policies During the Great Financial Crisis","volume":"12 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2015-02-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"116911145","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}