This paper argues that the Bank of Japan shrank from doing the right thing because it required the adoption of unconventional policies that might lose the Bank its newly acquired independence. Taka Ito frankly recognises that this argument has a problem: the Bank of Japan adopted two and a half of the recommended unconventional policies: increasing excess reserves, buying government bonds and b...

Coastal salt marsh tidal creeks are thought to show less channel adjustment/movement relative to their terrestrial fluvial counterparts. We propose a mechanism for disturbance-mediated bank failure that may allow/initiate channel migration in these otherwise stable systems. The stability of tidal creeks is promoted by the extensive vegetation root structure along the banks. However, wrack mats ...

This paper models loan rate-setting behavior, taking into account the product pricing and performance of the borrowing firm, and also calculates the bank’s loan-risk sensitive equity values. The lending function creates the need to model bank equity as a capped call option, which captures the credit risk directly related to management of a firm’s operations. When the product price set by the bo...

Working papers of the Federal Reserve Bank of Cleveland are preliminary materials circulated to stimulate discussion and critical comment on research in progress. They may not have been subject to the formal editorial review accorded official Federal Reserve Bank of Cleveland publications. The views stated herein are those of the authors and are not necessarily those of the Federal Reserve Bank...

We build discrete-time compactly supported biorthogonal wavelets and perfect reconstruction filter banks for any lattice in any dimension with any number of primal and dual vanishing moments. The associated scaling functions are interpolating. Our construction relies on the lifting scheme and inherits all of its advantages: fast transform, in-place calculation, and integer-to-integer transforms...