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Bank:Federal Reserve Bank of Minneapolis 

Journal Article
Priorities for the Federal Reserve

Gary Stern's departing thoughts on where the Fed should focus its efforts
The Region , Volume 23 , Issue Sep , Pages 2-4

Journal Article
Anti-poverty design: the cash-out option

The poverty debate largely ignores the success of the Earned Income Tax Credit and, by extension, the insights it might hold for future policy design
The Region , Volume 17 , Issue Jun , Pages 18-21, 54-57

Report
Sovereign risk and firm heterogeneity

This paper studies the recessionary effects of sovereign default risk using firm-level data and a model of sovereign debt with firm heterogeneity. Our environment features a two-way feedback loop. Low output decreases the tax revenues of the government and raises the risk that it will default on its debt. The associated increase in sovereign interest rate spreads, in turn, raises the interest rates paid by firms, which further depresses their production. Importantly, these effects are not homogeneous across firms, as interest rate hikes have more severe consequences for firms that are in need ...
Staff Report , Paper 547

Working Paper
Linear rational expectations models for dynamically interrelated variables

Working Papers , Paper 135

Journal Article
A report from the battlefield. Conference attendees agree on some proposals, but no treaty

The Region , Volume 10 , Issue Jun , Pages 8-19

Report
A Demand System Approach to Asset Pricing

This Staff Report was previously titled "An Equilibrium Model of Institutional Demand and Asset Prices." {{p}} We develop an asset pricing model with rich heterogeneity in asset demand across investors, designed to match institutional holdings data. The equilibrium price vector is uniquely determined by market clearing, which equates the supply of each asset to aggregate demand. We estimate the model on U.S. stock market data by instrumental variables, under an identifying assumption that allows for price impact. The model sheds light on the role of institutions in stock market ...
Staff Report , Paper 510

Report
Comments on price indexes and inflation

Staff Report , Paper 6

Journal Article
Gresham's law or Gresham's fallacy?

In this article, the authors argue the answer to their title depends on whether a qualifier is added to the standard version of the law that "bad money drives out good." By examining several historical episodes, they find instances where bad money (valued more at the mint than in the market) failed to drive out good money (valued less at the mint than in the market). Rolnick and Weber next explain why the common qualifier to this law, which requires the mint to fix the rate of exchange at face value, does not reinstate the law. The common qualifier fails to give plausible reasons for how ...
Quarterly Review , Volume 10 , Issue Win , Pages 17-24

Journal Article
The ABCs of ECD

Conference explores the latest research on the economics of early childhood development
The Region , Volume 17 , Issue Dec , Pages 20-24

Journal Article
Truths about trade and the dollar

A Minneapolis Fed directors' retreat explores the realities of international trade and foreign exchange
The Region , Volume 19 , Issue Dec , Pages 34-39

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