I examine how the interaction between deposit market concentration and banks’ reliance on wholesale funding shapes the transmission of monetary policy shocks to mortgage rates.
I study monetary policy transmission to mortgage rates across different interest rate environments—comparing zero lower bound vs normal periods, low vs high rate periods, and expansionary vs contractionary monetary policy.
The Fed just voted to cut capital regulations for large banks. I favor higher capital regulations in general. But this move is to cut the enhanced supplemental leverage ratio (eSLR) -- a mouthful -- and I am somewhat sympathetic to this. A few thoughts. 1/
I presented my paper, "Unconventional Monetary Policy Transmission and Bank Market Power," at the CEBRA Annual Meeting hosted by the Federal Reserve Bank of New York and Columbia University.
🔍 Additionally, I had the amazing opportunity to discuss a paper, "Central Bank Exit Strategies: Domestic Transmission and International Spillovers" by Erceg, Kolasa, Linde, Mumtaz, Zabczyk.
Very happy to study this beautiful paper; learned a lot! In my discussion, I also talked about whether the recent household debt boom in 🇨🇦Canada🇨🇦 is a concern of financial fragility by making their balance sheets more sensitive to large interest rate hikes as well as income and house price declines. https://t.co/2b9GzCdZJ0