Facebook's Libra: The Privatization of Money?

Marco  Di Maggio; Ethan  Rouen; George  Serafeim

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Teaching Note | HBS Case Collection | December 2019

Facebook's Libra: The Privatization of Money?

by Marco Di Maggio, Ethan Rouen and George Serafeim

Abstract

Teaching Note for HBS No. 120-021.

Language: English

Format: Print

14 pages

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Citation:

Di Maggio, Marco, Ethan Rouen, and George Serafeim. "Facebook's Libra: The Privatization of Money?" Harvard Business School Teaching Note 220-048, December 2019.

About the Authors

Marco Di Maggio

Ogunlesi Family Associate Professor of Business Administration

Finance

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Ethan C. Rouen

Assistant Professor of Business Administration

Accounting and Management

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George Serafeim

Charles M. Williams Professor of Business Administration

Accounting and Management

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View Publications »

More from these Authors

Teaching Plan | HBS Case Collection | May 2020

SK Group: Social Progress Credits

George Serafeim, Ethan Rouen, David Freiberg, George Serafeim, Ethan Rouen and David Freiberg

Teaching Plan for HBS Case No. 120-071.

Citation:
Serafeim, George, Ethan Rouen, and David Freiberg. "SK Group: Social Progress Credits." Harvard Business School Teaching Plan 120-112, May 2020. View Details

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Teaching Plan | HBS Case Collection | May 2020

SK Group: Social Progress Credits

George Serafeim, Ethan Rouen, David Freiberg, George Serafeim, Ethan Rouen and David Freiberg

Teaching Plan for HBS Case No. 120-071.

Citation:
Serafeim, George, Ethan Rouen, and David Freiberg. "SK Group: Social Progress Credits." Harvard Business School Teaching Plan 120-112, May 2020. View Details

Cite View Details Purchase Related
Article | Review of Economic Studies | May 2020

How Quantitative Easing Works: Evidence on the Refinancing Channel

Marco Di Maggio, Amir Kermani and Christopher Palmer

We document the transmission of large-scale asset purchases by the Federal Reserve to the real economy using rich borrower-linked mortgage-market data and an identification strategy based on mortgage market segmentation. We find that central bank QE1 MBS purchases substantially increased refinancing activity, reduced interest payments for refinancing households, led to a boom in equity extraction, and increased aggregate consumption. Relative to QE-ineligible jumbo mortgages, QE-eligible conforming mortgage interest rates fell by an additional 40 bp and refinancing volumes increased by an additional 56% during QE1. We estimate that households refinancing during QE1 increased their durable consumption by 12%. Our results highlight that the transmission of unconventional monetary policy to the real economy depends crucially on the composition of assets purchased and the degree of segmentation in the market.

Keywords: monetary policy; MBS; quantitative easing; LSAP; refinancing; deleveraging; HARP; GSE; Central Banking; Global Range; Financing and Loans; Credit; United States;

Citation:
Di Maggio, Marco, Amir Kermani, and Christopher Palmer. "How Quantitative Easing Works: Evidence on the Refinancing Channel." Review of Economic Studies 87, no. 3 (May 2020): 1498–1528. View Details

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Facebook's Libra: The Privatization of Money?

Abstract

Citation:

About the Authors

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