. Banks maximize profits, and there are no conflicts of interest between bank shareholders and creditors. The theory explains …, banks make loans, securitize these loans, trade in them, or hold cash. They can also borrow money, using their security … holdings as collateral. We embed such banks in a stylized financial market, in which securitized loans may be mispriced, and …

central banks in the absence of any formal arrangements among their governments to limit exchange rate volatility. The …

volatility, the deregulation was associated with a convergence of Japanese quoted spreads toward those of other banks. (2 …