Board of Governors of the Federal Reserve System

The first draft of this paper (November 2013) was completed when both ...Compare Database for this paper. †Naoki Aizawa: Department of Economics

and- at 5.5 per cent--the unemployment rate was essentially unchanged ...price index rose at a moderate rate although retail prices of foods increased

for- eign financial markets during the period since the Com- mittee met...prices and in prices of non-energy imports. Survey-based measures of longer-run

over-the-counter (OTC) derivatives markets. In addition to the core questions...comparing current levels of hedge fund leverage to the pre-crisis peak

the “Final Rule”) requires bank holding companies and certain foreign ...and, (c) an indirectly-owned broker dealer (Banco Votorantim Securities

on-the-run two-year Treasury. As it became clear that Salomon’s senior...and, by nature of its frequent activity in these markets, in conducting

key findings emerge: first, indeterminacy occurs for any value of the ...key findings emerge from this paper. First, we find that indeterminacy

CD maturities and, in the case of shorter CD's, banks have not been willing...CD's and passbook savings balances have continued to grow rapidly and,

and, less happily, for the sharp decline in equity prices that marked ...asset-price advance. This so-called wealth effect--always a key 1 My presentation

The views in this paper are solely the responsibility of the authors and...2For an early use of the expression “new normal,” see El-Erian (2010).