Leverage-induced fire sales contributed to the worst stock market crashes in history. Prof. Kelly Shue studied account-level data from the Chinese market crash in 2015 to illuminate how much leverage matters.
President Trump recently announced his intention to appoint two well-known conservative figures—Stephen Moore and Herman Cain—to the Federal Reserve Board of Governors. We asked Prof. Andrew Metrick about the qualities of an effective Fed governor.
The Consumer Financial Protection Bureau will stop requiring payday lenders to confirm borrowers' ability to repay. We asked Yale SOM's Paul Goldsmith-Pinkham what this change might mean to financially strapped Americans.
U.S. regulators have proposed revising the Volcker rule, which restricts the ability of banks to make risky trades with money from depositors. We asked Yale SOM’s Andrew Metrick about the potential consequences of the change.