Federal Reserve Board
Mail Stop 61
Division of Research and Statistics
Washington, DC 20551
Institutional Affiliation: Federal Reserve Board
Information about this author at RePEc
NBER Working Papers and Publications
|December 2013||Financial Statistics for the United States and the Crisis: What Did They Get Right, What Did They Miss, and How Could They Change?|
with Matthew J. Eichner, Donald L. Kohn
in Measuring Wealth and Financial Intermediation and Their Links to the Real Economy, Charles R. Hulten and Marshall B. Reinsdorf, editors
Although the instruments and transactions most closely associated with the recent financial crisis were novel, the underlying themes of the crisis were familiar from previous episodes: Competitive dynamics resulted in excessive leverage and risk-taking by large, interconnected firms, heavy reliance on short-term sources of funding to finance long-term and ultimately illiquid positions, and common exposures being shared by many major financial institutions. After the crisis, financial supervisors and policymakers want better and earlier indications regarding these critical and recurring core vulnerabilities in the financial system. In a sense, gaps in data and analysis defined the shadows in which the "shadow banking system" associated with increasing financial risks grew. We agree more ...
|January 2009||The Integrated Financial and Real System of National Accounts for the United States: Does It Presage the Financial Crisis?|
with Jonathan A. Parker: w14663
The initial implementation of the System of National Accounts (1993) for the United States by the Bureau of Economic Analysis and the Federal Reserve Board has two significant advantages for economists. First, the SNA are organized according to sectors of the economy defined by economic agents: firms, financial institutions, consumers, governments and the rest of the world. Second, the accounts integrate real and financial information, so that one can track not only production of, income from, and use of output, but also net lending, net borrowing, and net worth by sector. We exploit these two features in the SNA accounts to examine US economic history leading up to the financial crisis of 2007 and recession of 2008. First, the SNA data show recent increases in leverage in the household se...
Published: Michael G. Palumbo & Jonathan A. Parker, 2009. "The Integrated Financial and Real System of National Accounts for the United States: Does It Presage the Financial Crisis?," American Economic Review, American Economic Association, vol. 99(2), pages 80-86, May. citation courtesy of