Yale School of Management

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Unemployment Insurance and Short-Time Compensation in the US and abroad

June 11, 2020
To address the COVID-19 pandemic, governments around the world recently placed restrictions on business activities, in many cases ordering non-essential businesses to close and workers to stay at home. In many countries this led to a rapid decline in labor demand. In the US the Bureau of Labor Statistics (BLS) reported the highest unemployment rate since the Great Depression in April with a national rate of 14.7, an 11 percentage point increase from the historical low of 3.5 percent reported two months before. Nevada reported the highest rate in the country at 28.2 percent, up from 6.3 percent in March, while the lowest rate was reported in Connecticut at 7.9 percent, still more than a twofold increase from 3.7 percent reported in March. In May, the labor market began to show the first signs of recovery as  some states reopened their economies; the unemployment rate dropped to 13.3 percent. Continue reading “Unemployment Insurance and Short-Time Compensation in the US and abroad”

News in Systemic Risk: June 11, 2020 (10 a.m. ET)

June 11, 2020
Transcript of Chair Powell’s Press Conference Opening Remarks (Jerome Powell; Federal Reserve Board of Governors) Liquidity risks in the insurance sector (Christine Lagarde; European Systemic Risk Board) Measures of the Covid-19 Support Programme and setting up of the Mauritius Investment Corporation (Harvesh Seegolam; Bank of International Settlements) Liquidity risks arising from margin calls (European Systemic Risk Board) IMF Executive Board Approves US$594 Million in Emergency Assistance to Guatemala to Help Address the COVID-19 Pandemic (International Monetary Fund) The independence of the central bank at risk (Peter Bofinger, Martin Hellwig, Michael Hüther, Monika Schnitzer, Moritz Schularick, Guntram Wolff; VoxEU) Continue reading “News in Systemic Risk: June 11, 2020 (10 a.m. ET)”

News in Systemic Risk: June 10, 2020 (10 a.m. ET)

June 10, 2020
The monetary policy toolbox (Stefan Ingves; Sveriges Riksbank) The General Board of the European Systemic Risk Board takes second set of actions in response to the coronavirus emergency at its extraordinary meeting on 27 May 2020 (European Systemic Risk Board) What role did margin play during the Covid-19 shock (Renee Horrell, Pavel Chichkanov; Bank of England) Financial System Resilience: Lessons from a real stress (Jon Cunliffe; Bank of England) IMF Executive Board Approves a US$363.6 Million Disbursement to Papua New Guinea to Address the COVID-19 Pandemic (International Monetary Fund) Credit crisis is at the heart of India’s weakness (Benjamin Parkin; Financial Times) Continue reading “News in Systemic Risk: June 10, 2020 (10 a.m. ET)”

Federal Reserve Amends Main Street Lending Program

June 10, 2020
On June 8, the Federal Reserve announced significant changes to the Main Street Lending Program, a new facility designed to support lending to small and medium-sized businesses. The changes include decreasing the minimum loan amount for some loans, increasing the maximum loan amount, amending the loan repayment schedule, and extending the loan term.  Continue reading “Federal Reserve Amends Main Street Lending Program ”

News in Systemic Risk Blog, June 9, 2020 (10 a.m. ET)

June 9, 2020
Federal Reserve Board expands its Main Street Lending Program to allow more small and medium-sized businesses to be able to receive support (Federal Reserve Board of Governors) Hearing at the Committee on Economic and Monetary Affairs of the European Parliament (Christine Lagarde; European Central Bank) World Bank Sees 5.2% Decline in Global Economy in 2020 From Coronavirus (Josh Zumbrun; Wall Street Journal) Deflation Fears at ECB Signal Stimulus Battles for Lagarde (Paul Gordon; Bloomberg) The Bahamas : Request for Purchase under the Rapid Financing Instrument-Press Release; Staff Report; and Statement by the Executive Director for The Bahamas (International Monetary Fund) An Event Study of COVID-19 Central Bank Quantitative Easing in Advanced and Emerging Economies (Jonathan Hartley, Alessandro Rebucci; National Bureau of Economic Research) Determination of the February 2020 Peak in US Economic Activity (National Bureau of Economic Research) Continue reading “News in Systemic Risk Blog, June 9, 2020 (10 a.m. ET)”

Unemployment Insurance and Short-Time Compensation in the US and abroad

June 11, 2020
To address the COVID-19 pandemic, governments around the world recently placed restrictions on business activities, in many cases ordering non-essential businesses to close and workers to stay at home. In many countries this led to a rapid decline in labor demand. In the US the Bureau of Labor Statistics (BLS) reported the highest unemployment rate since the Great Depression in April with a national rate of 14.7, an 11 percentage point increase from the historical low of 3.5 percent reported two months before. Nevada reported the highest rate in the country at 28.2 percent, up from 6.3 percent in March, while the lowest rate was reported in Connecticut at 7.9 percent, still more than a twofold increase from 3.7 percent reported in March. In May, the labor market began to show the first signs of recovery as  some states reopened their economies; the unemployment rate dropped to 13.3 percent. Continue reading “Unemployment Insurance and Short-Time Compensation in the US and abroad”

News in Systemic Risk: June 11, 2020 (10 a.m. ET)

June 11, 2020
Transcript of Chair Powell’s Press Conference Opening Remarks (Jerome Powell; Federal Reserve Board of Governors) Liquidity risks in the insurance sector (Christine Lagarde; European Systemic Risk Board) Measures of the Covid-19 Support Programme and setting up of the Mauritius Investment Corporation (Harvesh Seegolam; Bank of International Settlements) Liquidity risks arising from margin calls (European Systemic Risk Board) IMF Executive Board Approves US$594 Million in Emergency Assistance to Guatemala to Help Address the COVID-19 Pandemic (International Monetary Fund) The independence of the central bank at risk (Peter Bofinger, Martin Hellwig, Michael Hüther, Monika Schnitzer, Moritz Schularick, Guntram Wolff; VoxEU) Continue reading “News in Systemic Risk: June 11, 2020 (10 a.m. ET)”

News in Systemic Risk: June 10, 2020 (10 a.m. ET)

June 10, 2020
The monetary policy toolbox (Stefan Ingves; Sveriges Riksbank) The General Board of the European Systemic Risk Board takes second set of actions in response to the coronavirus emergency at its extraordinary meeting on 27 May 2020 (European Systemic Risk Board) What role did margin play during the Covid-19 shock (Renee Horrell, Pavel Chichkanov; Bank of England) Financial System Resilience: Lessons from a real stress (Jon Cunliffe; Bank of England) IMF Executive Board Approves a US$363.6 Million Disbursement to Papua New Guinea to Address the COVID-19 Pandemic (International Monetary Fund) Credit crisis is at the heart of India’s weakness (Benjamin Parkin; Financial Times) Continue reading “News in Systemic Risk: June 10, 2020 (10 a.m. ET)”

Federal Reserve Amends Main Street Lending Program

June 10, 2020
On June 8, the Federal Reserve announced significant changes to the Main Street Lending Program, a new facility designed to support lending to small and medium-sized businesses. The changes include decreasing the minimum loan amount for some loans, increasing the maximum loan amount, amending the loan repayment schedule, and extending the loan term.  Continue reading “Federal Reserve Amends Main Street Lending Program ”

News in Systemic Risk Blog, June 9, 2020 (10 a.m. ET)

June 9, 2020
Federal Reserve Board expands its Main Street Lending Program to allow more small and medium-sized businesses to be able to receive support (Federal Reserve Board of Governors) Hearing at the Committee on Economic and Monetary Affairs of the European Parliament (Christine Lagarde; European Central Bank) World Bank Sees 5.2% Decline in Global Economy in 2020 From Coronavirus (Josh Zumbrun; Wall Street Journal) Deflation Fears at ECB Signal Stimulus Battles for Lagarde (Paul Gordon; Bloomberg) The Bahamas : Request for Purchase under the Rapid Financing Instrument-Press Release; Staff Report; and Statement by the Executive Director for The Bahamas (International Monetary Fund) An Event Study of COVID-19 Central Bank Quantitative Easing in Advanced and Emerging Economies (Jonathan Hartley, Alessandro Rebucci; National Bureau of Economic Research) Determination of the February 2020 Peak in US Economic Activity (National Bureau of Economic Research) Continue reading “News in Systemic Risk Blog, June 9, 2020 (10 a.m. ET)”