Economics

Other Report

Spillovers From Falling Oil Prices: Risks to Mexico and the United States

Authors: Michael A. Levi, Alexandra Mahler-Haug, and Shannon K. O'Neil

U.S. policymakers who worry about the impact of energy developments on geopolitics typically think of high oil prices as bad news and low prices as an unalloyed good. But a sustained drop in oil prices can be dangerous as well. This paper investigates Mexican vulnerability to falling oil prices—and spillovers to the United States—to show how troublesome such a development might be.

See more in Mexico; Oil; Budget, Debt, and Deficits

Op-Ed

Europe’s Dodgy Bank Stress Tests

Authors: Benn Steil and Dinah Walker
Wall Street Journal

Benn Steil and Dinah Walker analyze the market reaction to the publication of the European Central Bank's long-awaited bank stress test results. The ECB's coddling of stress-tested banks — through the use of inflated inflation estimates and generous treatment of tax offsets against future profits which may never arise — precipitated a sell-off of bank stocks in a period when broad European indexes were up significantly. Unlike with the successful 2009 U.S. stress tests, there is no credible backstop of public funds available for Eurozone bank recapitalization, which would account for the ECB's reluctance to draw attention to the sector's undercapitalization.

 

See more in Europe; Banks and Banking

Audio

Former Central Bankers on the Federal Reserve and Financial Stability

Speakers: Arminio Fraga, Jacob A. Frenkel, Philipp Hildebrand, and Mervyn King
Presider: Roger C. Altman

Arminio Fraga, former president at the Central Bank of Brazil, Jacob A. Frenkel, former governor at the Bank of Israel, Philipp Hildebrand, former chairman at the Swiss National Bank, Mervyn King, distinguished fellow at the Council on Foreign Relations and former governor at the Bank of England, join Roger C. Altman, former deputy secretary at the U.S. Department of the Treasury, to discuss their experiences as central bankers and insights into past financial crises.

See more in United States; Financial Regulation

Transcript

The Federal Reserve's Stanley Fischer on Inflation and Financial Stability

Speaker: Stanley Fischer
Introductory Speaker: Richard N. Haass
Presider: Laurence D. Fink

Stanley Fischer, vice chairman of the board of governors at the Federal Reserve System, joins
Laurence D. Fink, chairman and chief executive officer at BlackRock and member of the board of directors at the Council on Foreign Relations, to discuss how the Federal Reserve system has evolved over time, and challenges for the future.

See more in United States; Financial Regulation

Audio

The Federal Reserve Then and Now: Better Equipped to Avert Crises?

Speakers: Liaquat Ahamed, Willem Buiter, and Mark Gertler
Presider: Sebastian Mallaby

Liaquat Ahamed, author of Lords of Finance: The Bankers Who Broke the World, Willem Buiter, adjunct senior fellow at the Council on Foreign Relations and global chief economist at Citigroup, and Mark Gertler, professor of economics at New York University and member of the Federal Reserve Bank of New York’s Academic Advisory Board, join Sebastian Mallaby, Paul A. Volcker Senior Fellow for International Economics at the Council on Foreign Relations, to discuss the history of the Federal Reserve and its future.

See more in United States; Financial Regulation

Transcript

The Federal Reserve Then and Now: Better Equipped to Avert Crises?

Speakers: Liaquat Ahamed, Willem Buiter, and Mark Gertler
Presider: Sebastian Mallaby

Liaquat Ahamed, author of Lords of Finance: The Bankers Who Broke the World, Willem Buiter, adjunct senior fellow at the Council on Foreign Relations and global chief economist at Citigroup, and Mark Gertler, professor of economics at New York University and member of the Federal Reserve Bank of New York’s Academic Advisory Board, join Sebastian Mallaby, Paul A. Volcker Senior Fellow for International Economics at the Council on Foreign Relations, to discuss the history of the Federal Reserve and its future.

See more in United States; Financial Regulation

Audio

The Federal Reserve's Stanley Fischer on Inflation and Financial Stability

Speaker: Stanley Fischer
Introductory Speaker: Richard N. Haass
Presider: Laurence D. Fink

Stanley Fischer, vice chairman of the board of governors at the Federal Reserve System, joins
Laurence D. Fink, chairman and chief executive officer at BlackRock and member of the board of directors at the Council on Foreign Relations, to discuss how the Federal Reserve system has evolved over time, and challenges for the future.

See more in United States; Financial Regulation

Transcript

Former Central Bankers on the Federal Reserve and Financial Stability

Speakers: Arminio Fraga, Jacob A. Frenkel, Philipp Hildebrand, and Mervyn King
Presider: Roger C. Altman

Arminio Fraga, former president at the Central Bank of Brazil, Jacob A. Frenkel, former governor at the Bank of Israel, Philipp Hildebrand, former chairman at the Swiss National Bank, Mervyn King, distinguished fellow at the Council on Foreign Relations and former governor at the Bank of England, join Roger C. Altman, former deputy secretary at the U.S. Department of the Treasury, to discuss their experiences as central bankers and insights into past financial crises.

See more in Global; Financial Regulation

Video

Former Central Bankers on the Federal Reserve and Financial Stability

Speakers: Arminio Fraga, Jacob A. Frenkel, Philipp Hildebrand, and Mervyn King
Presider: Roger C. Altman

Arminio Fraga, former president at the Central Bank of Brazil, Jacob A. Frenkel, former governor at the Bank of Israel, Philipp Hildebrand, former chairman at the Swiss National Bank,
Mervyn King, distinguished fellow at the Council on Foreign Relations and former governor at the Bank of England, join Roger C. Altman, former deputy secretary at the U.S. Department of the Treasury, to discuss their experiences as central bankers and insights into past financial crises.

See more in United States; Financial Regulation

Video

The Federal Reserve Then and Now: Better Equipped to Avert Crises?

Speakers: Liaquat Ahamed, Willem Buiter, and Mark Gertler
Presider: Sebastian Mallaby

Liaquat Ahamed, author of Lords of Finance: The Bankers Who Broke the World, Willem Buiter, adjunct senior fellow at the Council on Foreign Relations and global chief economist at Citigroup, and Mark Gertler, professor of economics at New York University and member of the Federal Reserve Bank of New York’s Academic Advisory Board, join Sebastian Mallaby, Paul A. Volcker Senior Fellow for International Economics at the Council on Foreign Relations, to discuss the history of the Federal Reserve and its future.

See more in United States; Financial Regulation

Video

The Federal Reserve's Stanley Fischer on Inflation and Financial Stability

Speaker: Stanley Fischer
Introductory Speaker: Richard N. Haass
Presider: Laurence D. Fink

Stanley Fischer, vice chairman of the board of governors at the Federal Reserve System, joins
Laurence D. Fink, chairman and chief executive officer at BlackRock and member of the board of directors at the Council on Foreign Relations, to discuss how the Federal Reserve system has evolved over time, and challenges for the future.

See more in United States; Financial Regulation