Provide Chains, Pupil Debt, and Stablecoins—The High 5 Liberty Road Economics Posts of 2022


“Kitchen desk” points had been on the minds of our readers in 2022, although what was labeled as such was maybe a bit broader than up to now. Provide chains—now firmly positioned on the radar of Essential Road—had been the topic of the 12 months’s prime put up by variety of web page views and accounted for 3 of the highest 5 (we’ll think about them as one for this roundup). Pupil debt forgiveness and inflation had been additionally within the information, drawing readers to our preview of assorted prospects for the (subsequently introduced) federal pupil mortgage forgiveness program and a quarterly replace of a New York Fed financial forecast mannequin. Posts on extra technical matters had been common as effectively, together with an replace on the Federal Reserve’s steadiness sheet “runoff” and a dialogue of stablecoins. Underscoring their broad enchantment, the 12 months’s prime two posts rank among the many prime 5 within the historical past of Liberty Road, which dates again to 2011. Learn on to see which posts resonated most with readers. 

A graphic showing the rank and title of the number one post of the year on Liberty Street Economics based on page views, A New Barometer of Global Supply Chain Pressures.

By Gianluca Benigno, Julian di Giovanni, Jan J. J. Groen, and Adam I. Noble

Provide chain points had been all over the place this 12 months, as disruptions that started throughout the early days of the pandemic continued to have an effect on each the price and availability of products. The 12 months’s prime put up launched a brand new gauge providing a complete abstract of potential disruptions affecting international provide chains—the International Provide Chain Strain Index, or GSCPI. The authors describe the indications included within the index and present the developments in its elements and within the GSCPI itself again to 1997. The index generated such robust curiosity that the put up grew to become the second-highest-ranked within the historical past of the weblog, and two subsequent posts—one providing an replace of the index, one other saying its launch as an everyday launch of the New York Fed—additionally cracked the highest 5 for the 12 months. (January 4)

See additionally:
International Provide Chain Strain Index: March 2022 Replace (March 3)
International Provide Chain Strain Index: Could 2022 Replace (Could 18)

A graphic showing the rank and title of the number two post of the year on Liberty Street Economics based on page views, Who Are the Federal Student Loan Borrowers and Who Benefits from Forgiveness?

By Jacob Goss, Daniel Mangrum, and Joelle Scally

A number of months earlier than the White Home introduced its program to forgive federal pupil debt, our researchers carried out an evaluation of the prices and advantages of a variety of hypothetical proposals. Their put up, a part of our Financial Inequality Collection, used consultant information from anonymized credit score studies to determine federal loans, calculate the full value of every proposal, discover key variations in who owes federal pupil loans, and look at who would seemingly profit from federal pupil mortgage forgiveness below the varied situations. Sturdy media protection of the put up drove readership and helped propel it into Liberty Road’s prime 5 of all time. (April 21)

The authors revisited these points in September after the White Home introduced its plan for pupil debt forgiveness (at the moment on maintain), utilizing the identical anonymized credit score report information to replace their framework. The follow-up put up supplied estimates for the full quantity of forgiven loans and the distribution of who holds federal pupil loans earlier than and after implementation.

A graphic showing the rank and title of the number three post of the year on Liberty Street Economics based on page views, The New York Fed DSGE Model Forecast -- June 2022

By Marco Del Negro, Aidan Gleich, Shlok Goyal, Alissa Johnson, and Andrea Tambalotti

The authors offered the June replace of the financial forecasts generated by the New York Fed’s dynamic stochastic normal equilibrium (DSGE) mannequin (which isn’t an official New York Fed forecast, however an enter to the Analysis workers’s general forecasting course of), providing an outlook that was significantly extra pessimistic than the earlier replace in March. Publication of the put up got here amid heightened curiosity in, and issues about, the financial system—simply days after headline-making developments equivalent to CPI inflation hitting a (then) forty-year excessive, nationwide common gasoline costs hitting a (nonetheless) all-time excessive of $5 a gallon, the Federal Reserve saying the most important enhance in rates of interest since 1994, and steep declines in inventory markets. The put up’s authors, as all the time, supplied forecasts of GDP output development, inflation, and the actual pure price of curiosity, however its readership was something however routine, producing greater than six occasions the quarterly replace’s ordinary web page views. (June 17)

To see more moderen forecasts for these variables, view the September and December DSGE updates. You can too view our archive of DSGE updates, relationship again to 2015.

A graphic showing the rank and title of the number four post of the year on Liberty Street Economics based on page views, The Fed's Balance Sheet Runoff and the ON RRP Facility.

By Marco Cipriani, James Clouse, Lorie Logan, Antoine Martin, and Will Riordan

The authors up to date a 2017 Liberty Road Economics put up that described the steadiness sheet results of the Federal Open Market Committee’s resolution to scale back reinvestments of the proceeds of maturing securities, commencing the Federal Reserve’s steadiness sheet “runoff.” In 2017, the in a single day reverse repo (ON RRP) facility was pretty small and due to this fact it wasn’t talked about within the earlier put up for the sake of simplicity. However on the time of this replace, take-up on the ON RRP facility was greater than $1.5 trillion (and subsequently hit a peak of greater than $2.4 trillion in September, earlier than falling again a bit). On this put up, the authors describe how the presence of the ON RRP facility impacts the mechanics of steadiness sheet runoff when newly issued securities (equivalent to Treasury securities) are bought by banks and cash market funds. (April 11)

A companion put up mentioned what occurs when the newly issued securities are bought by levered nonbank monetary establishments (NBFIs), equivalent to hedge funds or nonbank sellers, and by households.

A graphic showing the rank and title of the number five post of the year on Liberty Street Economics based on page views, The Future of Payments Is Not Stablecoins.

By Rod Garratt, Michael Lee, Antoine Martin, and Joseph Torregrossa

Stablecoins—digital property used as a medium of alternate which are presupposed to be backed by property held particularly for that objective—grew significantly in 2020 and 2021, rising from a market capitalization of $5.7 billion on December 1, 2019, to $155.6 billion on January 21, 2022. Because of this, analysts started paying elevated consideration to the stablecoin market, and the President’s Working Group on Monetary Markets launched a stablecoins report in November 2021. On this put up from February, which predated the market gyrations attributable to the collapse of TerraUSD in Could and the failure of FTX in November, the authors defined why they imagine stablecoins are unlikely to be the way forward for funds. (February 7)

Tips on how to cite this put up:
, “Provide Chains, Pupil Debt, and Stablecoins—The High 5 Liberty Road Economics Posts of 2022,” Federal Reserve Financial institution of New York Liberty Road Economics, December 22, 2022,

The views expressed on this put up are these of the writer(s) and don’t essentially mirror the place of the Federal Reserve Financial institution of New York or the Federal Reserve System. Any errors or omissions are the duty of the writer(s).


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