The Asset-Backed Securities Market, the Crisis, and TALF

In response to recessions beginning in 1973, 2001, and 2007, the federal government provided financial aid to states, with the dual goals of stabilizing state finances and stimulating the economy. The timing of fund provision and the ultimate allocation of funds were often less than optimal. The authors look at how to design a more effective process for starting and stopping state aid.

Agarwal, Sumit and Barrett, Jacqueline and Cun, Crystal and De Nardi, Mariacristina and De Nardi, Mariacristina, The Asset-Backed Securities Markets, the Crisis, and TALF (December 16, 2010). Economic Perspectives, Vol. 34, No. 4, 2010, FRB of Chicago Working Paper , Available at SSRN: https://ssrn.com/abstract=1726548