FEDS Paper: Declining Search Frictions, Unemployment, and Growth Revisited

10/31/2025 Federal Reserve Central banks

Juan Carlos Córdoba, Anni T. Isojärvi, and Haoran LiThis paper revisits the conditions under which search models generate balanced growth paths (BGPs)—equilibria where unemployment, vacancies, and job flows remain steady as search frictions decline. Martellini and Menzio (2020) claim that such paths exist only when matches are “inspection goods” and match quality follows a Pareto distribution. We show that these conditions are sufficient but not necessary.

FEDS Paper: Do the Rich Really Save More? Answering an Old Question Using the SCF with Direct Measures of Lifetime Earnings and an Expanded Wealth Concept

10/31/2025 Federal Reserve Central banks

Elizabeth Llanes, Jeffrey Thompson, and Alice Henriques VolzThe question of whether affluent households save at a higher rate than other parts of the distribution has been asked by economists on numerous occasions since the 1950s. It is standard in this research to define affluent, or “rich,” households as those with high lifetime earnings or income to better ground the empirical question in relevant theory.

FEDS Paper: Understanding Preferences for Payment Cards using Household Scanner Data

10/31/2025 Federal Reserve Central banks

Marc Rysman, Shuang Wang, and Krzysztof WozniakWe use consumer panel scanner data to examine households' payment choices, a new application of such data. In particular, we study the long-term shift towards payment cards, as well as the role of transaction size in determining choices. We find that idiosyncratic household preferences are a key driver of payment choice.

When you click on an ad in sales season, retailers get to harvest your data

10/29/2025 The Conversation News & Comments

Earlier this year, the consumer watchdog fined three retailers, Michael Hill, MyHouse and Hairhouse Online, almost A$20,000 each for advertising “site-wide discounts” that allegedly never applied to all items on the website.

At first glance, this might look like a straightforward case of using allegedly misleading advertising for an economic benefit. Yet the implications go further.

FPC’s welcoming statement for policy statement (PS) 20/25 – The Strong and Simple Framework: The simplified capital regime for Small Domestic Deposit Takers (SDDTs) – near final

10/28/2025 Bank of England Central banks

The Financial Policy Committee (FPC) welcomes today the Prudential Regulation Authority’s (PRA’s) policy statement 20/25 – The Strong and Simple Framework: The simplified capital regime for Small Domestic Deposit Takers (SDDTs) – near-final.

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