Examine the capital ratios of large banks (FRED code: EQTA5) and small banks (FRED code: EQTA1). What can you say about the risk-taking propensity of these banks over the long run? How did the financial crisis of 2007-2009 influence the risk-taking of large banks?
Answer to relevant QuestionsHow important was the lender-of-last-resort function of the Federal Reserve in the financial crisis of 2007-2009? Beginning in 2000, plot the ratio of (in percent) of borrowing from the Fed (FRED code: DISCBORR) to its ...While central bank transparency is widely accepted as a desirable, too much openness may have disadvantages. Discuss what some of these drawbacks might be. When countries in a common currency area show persistently rising ratios of public debt to GDP, how does it affect the credibility of an inflation-targeting central bank?To what extent has the Federal Reserve “monetized” government debt? Plot since 1970 the change from a year ago (measured in billions of dollars) in gross federal debt (FRED code: FYGFD) and the change from a year ago ...In 2012, the FOMC stated for the first time that it aims at an inflation rate of 2 percent (based on the price index of personal consumption expenditures). How might this announcement help secure price stability?
Post your question