Federal Reserve Bank of San Francisco

Economic Research

Publications and Research Working Papers

FRBSF Economic Letters

Economic analysis and research summaries for a general audience.

How Important Are Hedge Funds in a Crisis?


Reint Gropp
2014-11

Before the 2007–09 crisis, standard risk measurement methods substantially underestimated the threat to the financial system. One reason was that these methods didn’t account for how closely commercial banks, investment banks, hedge funds, and insurance companies were linked. As financial conditions worsened in one type of institution, the effects spread to others. A new method that more accurately accounts for these spillover effects suggests that hedge funds may have been central in generating systemic risk during the crisis.

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Economic Review

An annual summary of Department research plus in-depth policy article.

FedViews

Analysis of current economic developments and the outlook.

FedViews: April 10, 2014

Glenn Rudebusch, executive vice president and director of research at the Federal Reserve Bank of San Francisco, provides his views on current economic developments and the outlook.

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SF Fed Forecast Preview

The SF Fed Forecast Preview is an advance release of the monthly SF Fed FedViews publication. Our forecasts of GDP, inflation, and unemployment will usually be released will usually be released on the second Tuesday of each month.

Western Economic Developments

Western Economic Developments is linked to via Fed in Print only.

Western Economic Developments January 1997

  • Executive Summary
  • District Update
  • Nonresidential Real Estate and Construction
  • Alaska, Oregon, and Washington
  • Arizona, California, and Hawaii
  • Idaho, Nevada, and Utah

Executive Summary

  • California’s economy continued to expand at a strong pace in late 1996, and the state’s labor market tightened further.
  • Nevada, the fastest-growing state in the nation, continued to add jobs at more than a 6-1/2 percent average annual pace in recent months.

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Working Papers

Preliminary versions of economic research.

The Euro and the Geography of International Debt Flows


Galina Hale and Maurice Obstfeld

Greater financial integration between core and peripheral EMU members affected both sets of countries. Lower interest rates allowed peripheral countries to run bigger deficits. Core countries took on extra foreign leverage to expose themselves to the peripherals. The result has been asset-price bubbles and collapses in some peripheral countries, area-wide banking crisis, and sovereign debt problems. We analyze international debt flows and provide evidence that after the euro’s introduction, core countries increased borrowing from outside of the EMU and their lending to the periphery.

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