The global financial crisis has highlighted the need for a regulatory framework that directly addresses systemic risk. Such a macroprudential approach to financial regulation focuses on enhancing the resilience of the financial system to adverse shocks and on preventing the build-up of systemic...

We are interested in the macroeconomic implications of the separation of ownership and control. We propose an alternative decentralized interpretation of the stochastic growth model, one where shareholders hire a self-interested manager who is in charge of the firm’s hiring and investment...

Diversification opportunities in Euroland appear to have improved significantly since the dvent of the euro, thus invalidating the prospects identified in the last years of the convergence-to-EMU period. We identify hwo frequency movements in the time series of return dispersions suggestive of...

This paper evaluates the welfare implications of front-running by mutual fund managers. It extends the model of Kyle (1985) to a sitaution in which the insider with fundamentals-information competes against an insider with trade-information and in which noise trading is endogenized.