Notes from the Vault

The Center for Financial Innovation and Stability's series, Notes from the Vault

Financial System of the Future
Larry D. Wall
November 2019

This post reviews some of the papers and presentations from an Atlanta Fed research workshop about the effect of post-crisis developments in regulation and technology on the financial system.

Procyclicality: CECL versus Incurred Loss Model
Larry D. Wall
October 2019

Critics contend that switching from the incurred loss model for loan losses to current expected credit loss will make lending more procyclical (magnifying the fluctuations in an economic cycle). This post critiques that argument.

Trusted Third Parties
Larry D. Wall
August 2019

The creation of bitcoin was motivated by a desire to avoid trusted third parties in financial transactions. This post discusses the role of trusted third parties in reducing theft.

Mapping the Financial Frontier
Larry D. Wall
June 2019

This post discusses the Atlanta Fed’s Financial Markets Conference on Mapping the Financial Frontier: What Does the Next Decade Hold? Topics include data privacy, blockchain technology, and mortgage finance.

Cashless Stores and Cash Users
Oz Shy
May 2019

With the emergence of cashless stores, how does this change affect consumers who lack credit or debit cards? This post characterizes consumers who pay cash for in-person purchases and those who do not have credit or debit cards.

Fractional Reserve Cryptocurrency Banks
Larry D. Wall
April 2019

Some observers argue that widespread acceptance of cryptocurrency would eliminate banks. This post discusses the potential for such banks and some issues raised by cryptocurrency banks.

Carry Factors: Characteristics and Informational Content
Nikolay Gospodinov and Ibrahim Jamali
March 2019

This post discusses the informational content of carry factors for policy analysis. It highlights the predictive content of the bond and commodity carry, respectively, for recessions and inflation, and the commonality in the currency carry.

Tech-Driven Financial Innovation in Banking
W. Scott Frame, Larry D. Wall, and Lawrence J. White
January 2019

This post draws on the authors' recent working paper to highlight why research on financial innovation is important. It also discusses some data limitations that inhibit such research.

Notes from the Vault was on hiatus after the March/April 2012 post; it restarted in March 2013.

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