Kara, Gazi - Federal Reserve Board (Board of Governors of the … - 2013
risk in global financial markets. In a two-country and three-period model, correlated asset fire sales by banks generate … systemic risk across national financial markets. Relaxing regulatory standards in one country increases both the cost and the … inefficiently low levels of macro-prudential regulation. A central regulator internalizes the systemic risk and thereby can improve …