In May, the Fed released a Financial Stability Report. It looks at four concerns: asset valuations, debt levels, leverage, and funding risk. Create a thesis on how the structure of the credit system might cause a focus on those concerns and the challenges it creates for stabilization policy. Stabilization policy can include monetary policy, regulation, and lender of last resort. For data, use FRED and the September Financial Accounts (Z.1) the numbers. Within the document, the FED breaks things down by who (households, corporations, etc.) and by what (stocks, bonds, etc.). Use the September 2019 Financial Accounts data to support a thesis (an argument) regarding how the structure of the credit system effects public policy. Make explicit use of the Z.1 numbers by creating tables or charts. The Z.1 release can be downloaded as an Excel file. Other economic measures, like GDP, CPI, etc., can be found at the St. Louis Federal Reserves FRED website. You may use sources in addition to course readings and Fed data. If other sources are used, then understand that: Only theory charts you draw using Microsoft Word (with shapes accessible) can earn full evidence points. Only data charts that you draw in Excel using Z1 and FRED data can earn full evidence points. Only references to class readings can earn full evidence points. The papers text will be at least 1,500 words (about six pages) not counting charts, but it can run longer if you have relevant arguments to make. 1. Papers will be submitted as a Microsoft Word document submitted through TCU Online. 2. Papers will be double spaced with Times New Roman 12 point font. 3. Papers will use a students TCU ID number rather than their name. 4. Papers will use brief citations to refer to relevant class readings. It will be sufficient to use author last name and page, such as (Kahn and Roberds, 2) to reference C. Kahn and W. Roberds Why pay? An introduction to payments economics, J. Finan. Intermediation 18 (2009): 123. 5. Additional sources are not required, but may be used. If additional sources are used, then create a bibliography to list them. Course readings need not be listed. 6. Endnotes or footnotes can be used if needed.
