New Economics Study Results from Federal Reserve Bank Described (Financial Intermediation and Aggregate Demand: a Sufficient Statistics Approach): Economics

2026 JUN 08 (NewsRx) -- By a News Reporter-Staff News Editor at Economics Daily Report -- Investigators discuss new findings in Economics. According to news reporting originating in St. Louis, Missouri, by NewsRx journalists, research stated, “We show that the financial sector’s asset supply elasticities are sufficient statistics summarizing its macroeconomic effects for a large class of financial frictions.”

Financial support for this research came from National Science Centre, Poland.

The news reporters obtained a quote from the research from Federal Reserve Bank, “These elasticities are crucial for a wide range of policy questions, ranging from the size of fiscal multipliers to the relative effectiveness of asset purchases targeting the financial sector versus tax cuts targeting households. Workhorse macroeconomic models imply different values of these elasticities, generating output responses to policies that differ by orders of magnitude.”

According to the news reporters, the research concluded: “We construct empirical measures of these elasticities and evaluate their policy implications in a quantitative model with household heterogeneity and illiquidity.”

This research has been peer-reviewed.

For more information on this research see: Financial Intermediation and Aggregate Demand: a Sufficient Statistics Approach. Review of Economic Studies, 2026. Review of Economic Studies can be contacted at: Oxford Univ Press, Great Clarendon St, Oxford OX2 6DP, England. (Oxford University Press - http://www.oup.com/; Review of Economic Studies - restud.oxfordjournals.org)

Our news correspondents report that additional information may be obtained by contacting Yu-Ting Chiang, Federal Reserve Bank, St. Louis, MO 63102, United States.

The direct object identifier (DOI) for that additional information is: https://doi.org/10.1093/restud/rdag032. This DOI is a link to an online electronic document that is either free or for purchase, and can be your direct source for a journal article and its citation.

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