We establish that the provision of intertemporal liquidity is fundamentally prone to instability. Not only are banks subject to coordination failures but also asset markets are inherently unstable. These findings challenge the notion of optimal private provision of liquidity
This paper develops a model of banking fragility driven by aggregate liquidity shortages. Inefficie...
ABSTRACT This paper focuses on an ex post trading problem in inter-bank money markets. An “over the...
In a crisis, regulators and private investors can find it difficult, if not impossible, to tell whet...
The joint supply of public and private liquidity is examined when financial intermediaries issue bot...
Liquidity, efficiency and bailouts. In illiquid markets asset prices can be below their expected val...
We prove that in competitive market economies with no insurance for idiosyncratic risks, agents will...
The paper models the interaction between risk taking in the financial sector and central bank policy...
The banking sector is one of the most highly regulated sectors in the economy. However, in contrast ...
For an economy with dysfunctional intertemporal financial markets the financial sector is modelled a...
Traditionally, aggregate liquidity shocks are modelled as exogenous events. Extending our previous w...
For an economy with dysfunctional intertemporal financial markets the financial sector is modelled a...
One reason why the 2007–2009 financial crisis was so severe and had a global impact was massive illi...
This paper provides a compact framework for banking regulation analysis in the presence of uncertain...
This paper develops a model of banking fragility driven by aggregate liquidity shortages. Inefficie...
ABSTRACT This paper focuses on an ex post trading problem in inter-bank money markets. An “over the...
In a crisis, regulators and private investors can find it difficult, if not impossible, to tell whet...
The joint supply of public and private liquidity is examined when financial intermediaries issue bot...
Liquidity, efficiency and bailouts. In illiquid markets asset prices can be below their expected val...
We prove that in competitive market economies with no insurance for idiosyncratic risks, agents will...
The paper models the interaction between risk taking in the financial sector and central bank policy...
The banking sector is one of the most highly regulated sectors in the economy. However, in contrast ...
For an economy with dysfunctional intertemporal financial markets the financial sector is modelled a...
Traditionally, aggregate liquidity shocks are modelled as exogenous events. Extending our previous w...
For an economy with dysfunctional intertemporal financial markets the financial sector is modelled a...
One reason why the 2007–2009 financial crisis was so severe and had a global impact was massive illi...
This paper provides a compact framework for banking regulation analysis in the presence of uncertain...
This paper develops a model of banking fragility driven by aggregate liquidity shortages. Inefficie...
ABSTRACT This paper focuses on an ex post trading problem in inter-bank money markets. An “over the...
In a crisis, regulators and private investors can find it difficult, if not impossible, to tell whet...