times and bank debt in adverse times. The paper suggests that better publicly available information about firm quality and … of firm's publicly observable credit quality. Under plausible assumptions about the cost of bank borrowing the model …

proposes an efficient alternative that combines information-theoretic arguments with economic incentives to produce more … probable links with the largest exposures consistent with the total lending and borrowing of each bank, leading to networks …

operations. These findings suggest that incentives to diversify bank liquidity risk dominate the benefits of private information … concentration of credit relationships and the position of a bank in the network topology of the system influence the bank's ability … by the individual banks in the European Central Bank's (ECB) weekly repo auctions. The bids measure each bank …

liquidity shortage. But forward contracts do not provide incentives for the large bank to pass on its information to other banks …. In contrast, lines of credit between the large and the small banks ensure that the large bank provides its information to …Money markets have two functions, the allocation of liquidity and the processing of information. We develop a model …

by the central bank is only partially passed on to the interbank market. Moreover, this framework allows us to examine … haircut rule for a central bank which decides to implement a 'leaning-against-the- wind'-policy. Finally, we analyze the long … bank can stabilize all variables at the cost of higher inflation and that macroeconomic volatility is smallest if the …