Monthly Archives: June 2013

Impact of “Substantially Heightened” Capital Requirements on Large Financial Institutions

From Anil Kashyap, Jeremy Stein, and Sam Hanson: ABSTRACT: We examine the impact of “substantially heightened” capital requirements on large financial institutions, and on their customers. Our analysis yields three main conclusions. First, the frictions associated with raising new external equity … Continue reading

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How to Tax Capital Gains

From Alan Auerbach: The recent controversy over the taxation of “carried interest” (the share of profits that managers of private equity funds, hedge funds and the like commonly receive) demonstrates the problems that can arise from taxing capital gains differently … Continue reading

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Jeremy Stein on Monetary Policy and “Substantial Progress”

From Jeremy Stein: I view Chairman Bernanke’s remarks at his press conference–in which he suggested that if the economy progresses generally as we anticipate then the asset purchase program might be expected to wrap up when unemployment falls to the … Continue reading

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Surprisingly Strong Productivity Growth in Unexpected Places

I’ve been spending this week at the UChicago Price Theory camp, which I’d definitely recommend to other graduate students, and wanted to share the following graph from Kevin Murphy. He pointed out that we have seen amazing productivity growth in many … Continue reading

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Hedge Fund versus CEO Pay

There are many interesting descriptive statistics in this paper by Steven Kaplan and Joshua Rauh, including: Since 2004, the 25 highest paid hedge fund managers have earned more than all of the chief executive officers of the Standard and Poor’s 500 companies … Continue reading

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Profits without Production

Paul Krugman has an interesting op-ed out today linking economic rents to the pace of the recovery.  Since profits are high while borrowing costs are low, why aren’t we seeing a boom in business investment? And, no, investment isn’t depressed … Continue reading

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