• Economics Department Page
  • Tutoring
  • Center for International Policy Studies CIPS
  • IPED

Fordham Economics Department

Graduate and undergraduate programs in New York City

  • Home
  • Research
  • Posts
  • Events
  • Programs
  • Opportunities
  • NY City
  • Methods

Kansas City Fed Economist speaks Tuesday 12-1pm on Monetary Policy Regime Switches.

February 8, 2016 by EL Mechry EL Koudouss

This Tuesday 12-1pm Andrew Foerster Economist at the Kansas City Fed will speak on “Optimal Monetary Policy Regime Switches.”  Dr. Foerster gained some notoriety for his 2014 Macro Bulletin on the The Asymmetric Effects of Uncertainty on Employment.    This analysis of how market volatility affects employment growth underlies what the Wall Street Journal Real Time Economics call the Fear Gauge (Figure 1 below).   As reported in a 2014 Kansas City Fed’s Macro Bulletin Foerster’s finds an asymmetric response of firms to uncertainty as measured by the VIX (Figure 2).  When uncertainty increases firms slow hiring, but after the VIX returns to normal levels firms are slow to return to previous hiring rates. This means a spike in the VIX can have significant and long lasting negative impact on employment.  His results suggest that the spike in the CBOE “fear” index triggered by the 2010 Euro crisis  led to a cumulative lost 400,000 jobs while the 2011-12 U.S. debt ceiling crisis cost even more jobs.  Without these jumps in CBOE volatility index the U.S. economy would have added almost about 16,000 more per month from 2010 to 2013 or a total of 600,000 jobs, suggesting this uncertainty slowed the slowed the U.S. recover from the 2008 Global Financial Crisis.

Department Seminar Note new Time: Tuesday, Feb 9, 12 – 1 pm

 Optimal Monetary Policy Regime Switches

Place: Economics Conference Room, Dealy Hall E-530

foerster-small

Capture1

Capture

Filed Under: Events, Posts, Research, spotlight

Stay Connected

  • Facebook
  • Instagram
  • RSS
  • Twitter

Ashoka Changemakers

The Social Innovation Collaboratory: Newsletter

Archives

  • April 2017 (1)
  • December 2016 (1)
  • October 2016 (6)
  • September 2016 (3)
  • August 2016 (1)
  • July 2016 (3)
  • June 2016 (1)
  • May 2016 (1)
  • April 2016 (2)
  • March 2016 (2)
  • February 2016 (4)
  • January 2016 (1)
  • December 2015 (1)
  • November 2015 (6)
  • October 2015 (5)
  • September 2015 (9)
  • August 2015 (7)
  • July 2015 (1)
  • April 2015 (3)

Copyright © 2021 · Lifestyle Pro Theme on Genesis Framework · WordPress · Log in