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Senior Fellows/Fellows

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Senior Fellows/Fellows

Risk Sharing in a Politically Divided Monetary Union

David PARSLEY, Helen POPPER
We examine business cycle divergence and risk-sharing channels within the United States as a whole and in U.S. ‘regions’ whose populations have voted consistently Democrat (Blue) or Republican (Red) in national elections. We find: (1) state busi-ness cycle divergence exceeds international diver...
Keywords: monetary union, consumption risk-sharing, economic and political di-vergence
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Senior Fellows/Fellows

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Senior Fellows/Fellows

Rising Policy Uncertainty

Steven J. DAVIS, Nicholas A. BLOOM, David E. ALTIG, Jose Maria BARRERO, Brent MEYER, Nicholas PARKER
I review evidence of rising policy uncertainty in the U.S. and global economies, drawing heavily on newspaper-based measures. Examples from countries around the world illustrate the role of political and policy developments as drivers of fluctuations in economic uncertainty. I also highlight the pro...
Keywords: Policy uncertainty, Trade Policy, Stock Market Volatility, Newspaper-Based Measures
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Senior Fellows/Fellows

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Senior Fellows/Fellows

Reverse Mergers, Shell Value, and Regulation

Charles M. C. LEE, Yuanyu QU, Tao SHEN
Using a comprehensive sample of reverse merger (RM) transactions, we examine the effects of China’s IPO regulations on the prices and returns of its publicly listed stocks. During 2007-2015, unlisted Chinese firms paid an average of 3 to 4 Billion RMB for each listed shell, an amount exceeding 2/3...
Keywords: reverse mergers, shell value, anomalies, regulation risk, IPOs, Chinese equity markets
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Annual Conference

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International Macroeconomics, Money & Banking, Senior Fellows/Fellows

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May 2023

Reserves were not so ample after all

Darrell DUFFIE, Adam COPELAND, Yilin (David) YANG
The Federal Reserve’s “balance-sheet normalization,” which reduced aggregate reserves between 2017 and September 2019, increased repo rate distortions, the severity of rate spikes, and intraday payment timing stresses, culminating with a significant disruption in Treasury repo markets in mid-S...
Keywords: Repo rates, reserves, Treasuries, payments, central-bank balance sheet
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Senior Fellows/Fellows

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Senior Fellows/Fellows

Repatriation Taxes and Foreign Cash Holdings: The Impact of Anticipated Tax Reform

Lisa De SIMONE, Joseph D. PIOTROSKI, Rimmy E. TOMY
We examine whether anticipation of a repatriation tax reduction affects the amount of cash U.S. multinational corporations (MNCs) hold overseas. We find that U.S. MNCs most likely to benefit from a repatriation tax reduction accumulated significant cash holdings once Congress proposed legislation, a...
Keywords: Multinational corporate taxation, Repatriation, Foreign cash
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