26 September 2016
An open-market operation undertaken by the Federal Reserve in 1932, at the height of the Great Depression, entailing purchases of medium- and long-term securities, dramatically lowered medium- and long-term Treasury yields, according to Michael Bordo
and Arunima Sinha
. They find that this open-market purchase operation was more effective in stimulating output growth than the qualitative easing strategy the Fed used in the most recent financial crisis.
23 September 2016
Linking college transcripts, financial aid information, and later-life credit bureau data of West Virginia’s WV PROMISE scholarship recipients and similar students who did not receive scholarships, Judith Scott-Clayton
and Basit Zafar
find that recipients are more likely to earn a graduate degree, more likely to own a home and live in higher-income neighborhoods, and more likely to be in better overall financial health.
22 September 2016
In November 2005, Germany announced an unexpected 3-percentage point increase in the value added tax. Francesco D’Acunto
, Daniel Hoang
, and Michael Weber
find that this increased households' inflation expectations in 2006 and actual inflation in 2007, and raised German consumers' willingness to purchase durables by 34 percent.