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A Macroprudential Theory of Foreign Reserve Accumulation
Arce, Fernando - 2019
This paper proposes a theory of foreign reserves as macroprudential policy. We study an open economy model of financial … significantly reduces the exposure to financial crises. The theory is consistent with the joint dynamics of private and official …
Persistent link: https://www.econbiz.de/10012480180
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Overborrowing, Financial Crises and 'Macro-prudential' Taxes
Bianchi, Javier - 2010
returns, Sharpe ratios and the price of risk are also much larger, and the distribution of returns displays endogenous fat …
Persistent link: https://www.econbiz.de/10012462564
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Financial Safety Nets
Bengui, Julien - 2016
In this paper, we study the optimal design of financial safety nets under limited private credit. We ask when it is optimal to restrict ex ante the set of investors that can receive public liquidity support ex post. When the government can commit, the optimal safety net covers all investors....
Persistent link: https://www.econbiz.de/10012456085
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Efficient Bailouts?
Bianchi, Javier - 2012
in credit markets and the buildup of risk ex ante. During a systemic crisis, bailouts relax balance sheet constraints and … mitigate the severity of the recession. Ex ante, the anticipation of such bailouts leads to an increase in risk-taking, making …
Persistent link: https://www.econbiz.de/10012460074