Bouvard, Matthieu; Chaigneau, Pierre; Motta, Adolfo de - Centre Interuniversitaire sur le Risque, les Politiques … - 2012
The paper presents a theory of optimal transparency in the financial system when financial institutions have short-term liabilities and are exposed to rollover risk. Our analysis indicates that transparency enhances the stability of the financial system during crises but may have a destabilizing...