The Economy

We produce and compile research and data on the overall economy, banking and financial markets. Our goal is to help financial institutions operate in a safe manner and support a robust U.S. financial system.

The Evolution of the Corporate Bond Market: A Theoretical Analysis

WP 26-27 – The authors study the impact of three recent developments in the corporate bond market: an increase in dealers’ balance sheet costs, the rise of electronic trading platforms, and the shift in ownership toward mutual funds and ETFs.

Regional Economics

Working Paper

Fast Locations and Slowing Mobility

WP 26-26 – Declining internal migration in the United States is driven by increasing home attachment in “fast” locations with previously high rates of population turnover.

Aruoba-Diebold-Scotti Business Conditions Index

An index designed to track real business conditions at high observation frequency

Banking Regulation with Risk of Sovereign Default

WP 26-25 – Banking regulation's failure to recognize the riskiness of government debt induces domestic banks to purchase risky government bonds and lowers the government’s borrowing costs. A government might use banking regulation to avert a default.

Event

Oct

9-10

2026

Call for Papers: 2026 Conference on Real-Time Data Analysis, Methods, and Applications

Federal Reserve Bank of Philadelphia

When Market Conditions Turn Volatile, Why Don’t Banks Use Bond Portfolios as Shock Absorbers?

Research in Focus — Three economists explain why banks didn’t adjust their bond portfolios during the 2022–2023 bout of rising interest rates.

Flight to Safety: Evaluating Stablecoin’s Role as a Safe-Haven Asset in DeFi Markets

WP 26-24 – This study examines the impact of the stablecoin Tether (USDT) on systemic liquidity across the Ethereum and Bitcoin markets, utilizing an event study approach that integrates on-chain wallet data, pricing, and financial metrics.