As TDFs have grown in size over the last two decades, the stock market has become less volatile than it would have been otherwise.
Is the resilience of the economy temporary and the hikes in the pipeline sufficient or does the Fed need even further hiking?
Regulators should force banks to raise more capital to make sure they can continue to "lend freely going forward," said Prof. Jonathan Parker.
MIT Sloan research focused on the portfolio changes made by a large group of investors in the wake of the November 2016 election.
"We show that the rise of TDFs has changed the flow of investor funds across funds and started affecting the prices and returns of stocks."
Workers can prepare for the possibility of a layoff by researching ahead of time whether they would be eligible for unemployment insurance.
"The goal was a pandemic insurance, to make sure that people who were falling through the cracks could pay their bills."
"The small, short-term spending response and its pattern suggest that the (payments) went to many people who did not need the funds.”
People were much slower to spend their government checks during the pandemic than they were during similar programs in 2001 and 2008.
[Prof.] Jonathan A. Parker from MIT and co-authors find that people spent less of their checks than estimated by previous studies.
