Social and Behavioral Sciences Commons^™

The European Central Bank's Covered Bond Purchase Programs I And Ii (Ecb Gfc), Ariel Smith

Journal of Financial Crises

In July 2009, the European Central Bank introduced a nonstandard measure to revitalize the European covered bond market, which at the time financed about one-fifth of mortgages in Europe. The market struggled after the collapse of Lehman Brothers as the global financial crisis intensified in 2008. Over the course of the program, which lasted 12 months, European central banks, collectively known as “the Eurosystem,” conducted direct purchases in both primary and secondary markets to a total of €60 billion of covered bonds. The Eurosystem held the purchased covered bonds until maturity and made them eligible for lending to counterparties as …

The European Central Bank's Securities Markets Programme (Ecb Gfc), Ariel Smith

Journal of Financial Crises

The Eurozone struggled during the escalation of the sovereign debt crisis in 2010. In order to aid malfunctioning securities markets, restore liquidity, and enable proper functioning of the monetary policy transmission mechanism, the European Central Bank (ECB) instituted the Securities Markets Programme (SMP) on May 9, 2010. This program enabled Eurosystem central banks to purchase securities from entities in Greece, Ireland, Portugal, Italy, and Spain. The program ended on September 6, 2012, and evaluations of its effectiveness are mixed.

The European Central Bank's Three-Year Long-Term Refinancing Operations (Ecb Gfc), Aidan Lawson

Journal of Financial Crises

The announcement of the three-year Long-Term Refinancing Operations (LTROs) by the European Central Bank (ECB) on December 8, 2011, signaled the beginning of the largest ECB market liquidity programs to date. Continued and increasing liquidity-related pressures in the form of ballooning financial market credit default swap (CDS) spreads, Euro-area volatility, and interbank lending rates prompted a much more forceful ECB response than what had been done previously. The LTROs, using a repurchase (repo) agreement auction mechanism, allowed any Eurozone financial institution to tap essentially unlimited funding at a fixed rate of just 1%. Because the three-year LTROs were so similar …

The Public-Private Investment Program: The Legacy Securities Program (U.S. Gfc), Ben Henken

Journal of Financial Crises

On March 23, 2009, the U.S. Treasury, in conjunction with the Federal Reserve (Fed) and the Federal Deposit Insurance Corporation (FDIC), announced the Public-Private Investment Program (PPIP). PPIP consisted of two complementary programs designed to foster liquidity in the market for certain mortgage-related assets: The Legacy Loans Program and the Legacy Securities Program. This case study discusses the design and implementation of the Legacy Securities Program. Under this program, the Treasury formed an investment partnership with nine private sector firms it selected at the conclusion of a months-long application process. Using a combination of private equity and debt and equity …

The Public-Private Investment Program: The Legacy Loans Program (U.S. Gfc), Ben Henken

Journal of Financial Crises

On March 23, 2009, the U.S. Treasury, in conjunction with the Federal Reserve (Fed) and the Federal Deposit Insurance Corporation (FDIC), announced the Public-Private Investment Program (PPIP). PPIP consisted of two complementary programs designed to foster liquidity in the market for certain mortgage-related assets: The Legacy Loans Program and the Legacy Securities Program. This case study discusses the design and implementation of the Legacy Loans Program. Under this program, the FDIC and Treasury attempted to create public-private investment partnerships that—using a combination of private equity, Treasury equity, and FDIC-guaranteed debt—would purchase legacy mortgage loans from U.S. banks by way of …

The Term Asset-Backed Securities Loan Facility (Talf) (U.S. Gfc), June Rhee

Journal of Financial Crises

In the fall of 2008, the securitization market, which was the major provider of credit for consumers and small businesses, came to a near halt. Investors in this market abandoned not only the residential mortgage-backed securities that triggered the financial crisis but also consumer and business asset-backed securities (ABS), which had a long track record of strong performance, and commercial mortgage-backed securities (CMBS). Also, the unprecedented widening of spreads for these securities rendered new issuance uneconomical, and the shutdown of the securitization market threatened to exacerbate the downturn in the economy.

On November 25, 2008, the Federal Reserve (the Fed) …

The Asset-Backed Commercial Paper Money Market Mutual Fund Liquidity Facility (Amlf) (U.S. Gfc), Rosalind Z. Wiggins

Journal of Financial Crises

In mid-September 2008, following the bankruptcy of Lehman Brothers, money market mutual funds (MMMFs) began to experience run-like redemption requests after a large fund “broke the buck,” owing to a large position in Lehman commercial paper (CP). Funds, which as a group were the largest investors in CP, retreated from CP, including asset-backed commercial paper (ABCP). Funds also sought to raise cash to meet redemptions by selling assets but were reluctant to sell ABCP into a depressed market. As the CP and ABCP markets seized up, it became difficult for issuers to place new paper, and concern grew about possible …

The Money Market Investor Funding Facility (U.S. Gfc), Rosalind Z. Wiggins

Journal of Financial Crises

In mid-September 2008, money market mutual funds (MMMFs) began to experience run-like redemption requests after the Reserve Primary Fund “broke the buck.” As a result, MMMFs became reluctant to roll over or invest in commercial paper (CP) and faced the prospect of selling asset-backed commercial paper (ABCP) they held into a declining market to raise cash. The money markets quickly became negatively impacted, and on October 21, 2008, the Fed announced the Money Market Investor Funding Facility (MMIFF), which would loan funds to a series of special purpose vehicles (SPVs) established by the private sector. The SPVs would use the …

Term Securities Lending Facility (Tslf) (U.S. Gfc), Manuel Leon Hoyos

Journal of Financial Crises

The 2007–09 financial crisis reached a critical stage in March 2008. Amid falling house prices and downgrades of mortgage-related securities, financial markets became severely disrupted. The Federal Reserve—the US central bank—became increasingly concerned about the inability of the 20 primary dealers, including the five largest US investment banks, to fund themselves in short-term funding markets, such as the repurchase agreement market, then estimated at $10 trillion. In response, the Fed created several emergency lending facilities to restore market liquidity that required the Fed to invoke Section 13(3) of the Federal Reserve Act. The Term Securities Lending Facility authorized the Federal …

The Commercial Paper Funding Facility (U.S. Gfc), Rosalind Z. Wiggins

Journal of Financial Crises

In mid-September 2008, prime money market mutual funds (MMMFs) began experiencing run-like redemption requests sparked by one fund that had “broken the buck” because of large exposure to Lehman Brothers commercial paper (CP). As a result, MMMFs, which are significant investors in CP, became reluctant to hold CP. Within a week, outstanding CP had been reduced by roughly $300 billion. The CP market experienced severe shortening of maturities and increased rates, making it difficult for issuers to place new paper. When government efforts to assist the MMMFs did not resolve the stresses in the CP market, the Federal Reserve announced, …

The Primary Dealer Credit Facility (Pdcf) (U.S. Gfc), Karen Yang

Journal of Financial Crises

On March 16, 2008, the Federal Reserve created the Primary Dealer Credit Facility, or PDCF, to provide overnight funding to primary dealers in the tri-party repurchase agreement (repo) market, where lenders had become increasingly risk averse. Loans were fully secured by (initially) investment-grade securities and offered at the primary credit rate by the Federal Reserve Bank of New York. The eligible collateral was significantly expanded in September 2008, after rumors of Lehman Brothers potentially filing for bankruptcy, to include all of the types of instruments that could be pledged at the two major tri-party repo clearing banks. The PDCF was …

The Federal Reserve Single-Tranche Term Repurchase Agreements (U.S. Gfc), Aidan Lawson

Journal of Financial Crises

As mortgage defaults and foreclosures continued to climb, the severe strains that started to plague credit markets in the middle of 2007 worsened further. Losses on housing-related securities and derivative instruments continued to climb, causing substantial damage to the balance sheets of large financial institutions that had levered up on these same securities. As their positions worsened, banks found it increasingly difficult to attract funding that wasn’t priced at exorbitantly high rates or for very short terms. Term funding markets, specifically those that centered on agency mortgage-backed securities (MBS), quickly dried up as fears of illiquidity and even insolvency spread. …

The Federal Reserve’S Response To The 1987 Market Crash (U.S. Historical), Kaleb B. Nygaard

Journal of Financial Crises

The S&P 500 lost 10% the week ending Friday, October 16, 1987, and lost an additional 20% the following Monday, October 19, 1987. The date would be remembered as Black Monday. The Federal Reserve (the Fed) responded to the crash in four distinct ways: (1) issuing a public statement promising to provide liquidity, as needed, “to support the economic and financial system”; (2) providing support to the Treasury securities market by injecting in-high-demand maturities into the market via reverse repurchase agreements; (3) allowing the federal funds rate to fall from 7.5% to 7.0% and below; and (4) intervening directly to …

Market Liquidity Programs: Gfc And Before, June Rhee, Greg Feldberg, Ariel Smith, Andrew Metrick

Journal of Financial Crises

The virulence of the Global Financial Crisis of 2007–09 (GFC) was explained in large part by the increased reliance of the global financial system on market-based funding and the lack of preexisting tools to address a disruption in that type of system. This paper surveys market liquidity programs (MLPs), which we define as government interventions in which the key motivation is to stabilize liquidity in a specific wholesale funding market that is under stress. Most of the MLPs surveyed in this paper were launched during and after the GFC, but two pre-GFC MLPs are included. A subsequent survey on MLPs …

Designing The Main Street Lending Program: Challenges And Options, William B. English, J. Nellie Liang

Journal of Financial Crises

The Main Street Lending Program (MSLP) was established by the Federal Reserve to provide loans to small and mid-sized firms and large below-investment-grade firms that were financially sound before the onset of the COVID-19 pandemic. The program, which was established under the Fed’s Section 13(3) emergency authorities, is supported by capital from the U.S. Treasury and became operational in July 2020; however, utilization has been slight. We describe the economic challenges in designing a loan support program and evaluate the MSLP program in terms of how it manages significant asymmetric information, adverse selection, poor targeting, and moral hazard problems while …

Response To Exposure Draft On Bearer Plant: An Insight From Capture Theory, Yew Kuok Weng

Student Works (2020-2029)

Despite of steady progress in global convergence of accounting standards, certain International Accounting Standards (IAS) or International Financial Reporting Standard (IFRS) remain controversial and in need of major overhaul. IAS 41, Agriculture is one of the accounting standards for specialised industry where universal acceptance has not been gained among the stakeholders across the world. Particularly, the stakeholders connected to agricultural sector often express strong criticism towards the IAS 41, but little attention has been given to them by the international accounting standard setter. The long-waited revision of IAS 41 only took place after 14 years since the issuance of IAS …

Distillers Grains Pre, During, And Post Covid-19: Ongoing Recovery And Structural Demand Implications, Daniel Gertner, Elliott James Dennis

Cornhusker Economics

Prior to the shutdowns caused by the COVID-19 pandemic, distillers grains and other co-products of ethanol production played a crucial role in maintaining the rev-enue stream of dry mill ethanol plants (Irwin 2020). With low crude oil prices over the last half of the decade and corn prices holding steady over the same period of time, the margin for error in the ethanol industry was thin. More than a third of Nebraska’s ethanol plants either temporarily or permanently closed in 2019 (MacroTrends 2020); (York News Times 2019). To prevent similar outcomes, ethanol plants focused on diver-sifying their operations to produce …

Extending The Macroeconomic Impacts Forecasting Capabilities Of The National Energy Modeling System, Christa D. Court, Randall W. Jackson, Justin Adder, Gavin Pickenpaugh, Charles Zelek, Amanda J. Harker Steele

Regional Research Institute Working Papers

To comprehensively model the macroeconomic impacts that result from changes in long-term energy-economy forecasts, the United States Department of Energy’s National Energy Technology Laboratory (NETL) partnered with West Virginia University’s (WVU) Regional Research Institute to develop the NETL/WVU econometric input-output (ECIO) model. The NETL/WVU ECIO model is an impacts forecasting model that functions as an extension of the U.S. energy-economic models available from the United States (U.S.) Energy Information Administration’s National Energy Modeling System (NEMS) and the U.S. Environmental Protection Agency’s Market Allocation (MARKAL) model. The ECIO model integrates a macroeconomic econometric forecasting model and an input-output accounting framework along …

The Role Of Dispersal And School Attendance On Reproductive Dynamics In Small, Dispersed Populations: Choyeros Of Baja California Sur, Mexico, Shane Macfarlan, Ryan Schacht, Eric Schniter, Juan José Garcia, Diego Guevara Beltran, Jory Lerback

ESI Publications

Individuals from small populations face challenges to initiating reproduction because stochastic demographic processes create local mate scarcity. In response, flexible dispersal patterns that facilitate the movement of individuals across groups have been argued to reduce mate search costs and inbreeding depression. Furthermore, factors that aggregate dispersed peoples, such as rural schools, could lower mate search costs through expansion of mating markets. However, research suggests that dispersal and school attendance are costly to fertility, causing individuals to delay marriage and reproduction. Here, we investigate the role of dispersal and school attendance on marriage and reproductive outcomes using a sample of 54 …

Maine Employment Change During The Early Months Of The Covid-19 Pandemic: A Shift-Share Analysis, Todd Gabe

Economic Impact Analysis

The Maine economy experienced an 11-percent reduction in employment from February to July of 2020, with job losses of 18 percent from February to April and a 10-percent increase from April to July. Of the employment decline of 57,100 jobs from February to July, about 85 percent of the loss is related to the performance of the U.S. economy, and 16 percent is associated with factors that are unique to Maine.

Over the period of extreme job loss from February to April and the employment gains that happened between April and July, there’s wide heterogeneity in the performance of industry …

Public And Private (Dis)Incentives For Animal Identification, Elliott James Dennis

Extension Farm and Ranch Management News

First paragraph:

There has been a growing global trend towards automating data collection and using captured data to inform decision-making. This has spilled over into the beef complex where packers, feedlots, and cow-calf producers seek to leverage information on animal performance, health, and welfare. The technology to automate data collection, commonly advocated as a way to manage and identify cattle, diverges from the traditional means of identifying cattle through brands. This article reviews how common different animal identification practices are for feedlots and cow-calf producers in the United States and the public and private (dis)incentives for animal identification.

The Promise Landscape In Michigan, Michelle Miller-Adams

Presentations

No abstract provided.

Dampak Regulasi Obat-Obat Tertentu Terhadap Respon Industri Farmasi Di Indonesia, Diana Ernawati, Syarifah Liza Munira

Jurnal Kebijakan Ekonomi

This study analyzes the impact of the regulation of Spesific Drugs (OOT) applied to pharmaceutical companies producing OOT in 2018 on the number of OOT production. Using the difference-in-differences (DID) approach method, this study looked at the influence of the 5 (five) OOT groups. The results of this study indicate that there has been a decrease in the amount of OOT production which is also influenced by regulations, an increase in the price of medicinal raw materials (active drug ingredients), and the setting of finished drug prices. The variables that affect decreasing production are the generic drug class for the …

Ukuran Pemerintah, Kualitas Institusi, Dan Pertumbuhan Ekonomi Regional Di Indonesia, Ayu Putu Arantza Bonita, Diah Widyawati

Jurnal Kebijakan Ekonomi

The implementation of fiscal decentralization has brought significant changes to the management of public finances in Indonesia. Decentralization has been empirically proven to increase the size of government (ratio of government spending to output). Good institutional quality is considered as an important factor to ensure government spending is effective and able to contribute positively to the economy. This study aims to determine whether the influence of government size on economic growth depends on the quality of the institution. The study uses the level of analysis in 491 districts / municipalities in Indonesia during 2011-2017. Using Ordinary Least Square (OLS) estimation …

Dampak Pembangunan Jalan Tol Trans Jawa Terhadap Perekonomian Daerah Kabupaten/Kota, Indra Wijaya, Muhammad Halley Yudhistira

Jurnal Kebijakan Ekonomi

Infrastructure development is one of the driving wheels of economic that have potential to drive increased production, create jobs and reduce the number of poor people. One of the government's focus on infrastructure is the construction of the Trans Java Toll Road that connects the entire Java Island from Jakarta to Surabaya. The purpose of this research is to analyze the impact of the operation of the Trans Java Toll Road which began in part since 2015, 2017, 2018 and 2019 on the Regency/Municipality economy, especially those passed by toll roads. The indicators of regional economy in this research are …

Pengaruh Kebijakan Tarif Listrik Adjustment Terhadap Konsumsi Listrik Rumah Tangga Di Indonesia, Rima Agustin, Uka Wikarya

Jurnal Kebijakan Ekonomi

In determining electricity tariffs in Indonesia, it has changed since 2015, namely by the policy of tariff adjustments or adjustments to electricity tariffs by adjusting to macro indicators namely ICP, exchange rates and inflation. This paper will examine the impact of the tariff adjustment policy on Indonesia's household electricity consumption. By using the Ordinary Least Square (OLS) regression method, the results show that the effect of electricity prices on electricity consumption is negative and insignificant, which means that the effect of changes in electricity prices on household electricity consumption is very small. From this study also added control variables from …

Analisis Faktor – Faktor Yang Mempengaruhi Konsumsi Dan Produksi Gula Menuju Swasembada Gula 2019, Rosita Riris Puspitosari, Sulastri Surono

Jurnal Kebijakan Ekonomi

Sugar is a strategic food commodity which is targeted to reach self-sufficiency in 2019 although there are many problems in the Indonesian sugar industry. Sugar self-sufficiency can be realized if domestic sugar production is able to fulfill domestic sugar demand. This study analyzes the factors that influence consumption and production of Indonesian sugar and their implications for the 2019 sugar self-sufficiency target. For white sugar, the estimation using the simultaneous equation system resulted that domestic consumption for white sugar was positively affected by previous year's consumption and domestic production of white sugar was positively affected by sugarcane area and negatively …

How Communities Can Connect Economic And Skills Development, Timothy J. Bartik, Brad J. Hershbein, Michelle Miller-Adams

Presentations

No abstract provided.

Recruitment And Retention Of Agriculture Teachers In The Southeast: An Empirical Analysis Of The Star Program., Kristie Guffey, Jeffrey Young

Faculty & Staff Research and Creative Activity

This article describes the collaborative efforts of various state and national agencies working together to recruit and retain agriculture teachers in the states of Kentucky, South Carolina, and Ohio. We contrast multiple measures of recruitment and retention in these states with those from the comparator states of Arkansas, West Virginia, and Alabama. The strategies outlined market to new agriculture teachers and maintain current teachers in the profession targeting work-life balance, emotional, physical and social health. These have been a focal point in the federal State Teach Ag Results (STAR) program, but the effects of participation in STAR on recruitment and …

Wheeling Area Economic Outlook: 2021-2025, Brian Lego, John Deskins

Bureau of Business & Economic Research

The Wheeling Area economy has seen large swings in economic activity over the past several years. Surging energy production and massive increases in pipeline construction activity fueled strong economic growth during 2017 and 2018. By contrast, the completion of pipeline projects and two large hospital closures weighed on area payrolls in 2019 before the COVID-19 pandemic dealt the regional economy a major blow in early-2020. In this report, we present a detailed discussion of the Wheeling Area economy along with our forecast for regional economic conditions for the next five years.