Diverting domestic turmoil

The Classless Turmoil

Market Turmoil and Destabilizing Speculation

This paper explores how speculators can destabilize financial markets by amplifying negative shocks in periods of market turmoil, and confirms the main predictions of the theoretical analysis using data on money market funds (MMFs). I propose a dynamic trading model with two types of investors —long-term and speculative —who interact in a market with search frictions. During periods of turmoil ...

Lessons from the Financial Turmoil

On 14–15 July 2008, the Reserve Bank held a conference on ‘Lessons from the Financial Turmoil of 2007 and 2008’. The conference volume, which includes papers and discussions, will be available on 31 October.1 The following is the introductory chapter of the volume by Paul Bloxham (Head of Financial Conditions Section, Economic Analysis Department) and Christopher Kent (Head of the Bank’s Econom...

microRNAs: A Safeguard against Turmoil?

Emerging data suggest that microRNAs (miRNAs) are instrumental in a variety of stress responses in addition to their more recognized role in development. Surprisingly, miRNAs, which normally suppress expression of target transcripts, may become activators of expression during stress. This might be partially explained by new interactions of miRNA/Argonaute complexes with RNA-binding proteins tha...

Turmoil in the Health Insurance Marketplaces.

The first three years of the Affordable Care Act’s Health Insurance Marketplaces have been tumultuous ones, with rapid entry and exit of insurers and recent spikes in premiums. As concerns mount about the stability and viability of the Marketplaces, this brief provides some insight into the forces behind the headlines and presents six options for policymakers to consider.