that information about the backing assets - loans - not be revealed, so that bank money does not fluctuate in value …Banks are optimally opaque institutions. They produce debt for use as a transaction medium (bank money), which requires …, reducing the efficiency of trade. This need for opacity conflicts with the production of information about investment projects …

This paper addresses the following question: what ties together the traditional commercial banking activities of …

We develop a model of equilibrium entry, trade, and price formation in over-the- counter (OTC) markets. Banks trade … derivatives to share an aggregate risk subject to two trading frictions: they must pay a fixed entry cost, and they must limit the … provide intermediation services, while medium sized banks endogenously participate as "customers" mainly to share risks. We …

This paper studies the real estate brokerage industry in Greater Boston, an industry with low entry barriers and … substantial turnover. Using a comprehensive dataset of agents and transactions from 1998-2007, we find that entry does not … about $2 billion. House price appreciation in the first half of the 2000s accounts for 24% of overall entry and a 31 …

We study specialized lending in a credit market competition model with private information. Two banks, equipped with … similar data processing systems, possess "general" signals regarding the borrower's quality. However, the specialized bank … based on its specialized signal conditional on making a loan. This private-information-based pricing helps deliver the …

. Banks maximize profits, and there are no conflicts of interest between bank shareholders and creditors. The theory explains …We propose a theory of financial intermediaries operating in markets influenced by investor sentiment. In our model …

We present a model of shadow banking in which financial intermediaries originate and trade loans, assemble these loans … expectations, the shadow banking system is stable and improves welfare. When investors and intermediaries neglect tail risks …

This paper develops a general equilibrium model to examine the role of information technology when intermediaries … facilitate the origination and distribution of assets given information asymmetry. Information technology measures the … to uninformed investors. Allowing intermediaries to operate has a mixed social welfare effect: Uninformed intermediation …

of ETH, the native cryptocurrency of Ethereum--to examine how information asymmetry shapes intermediation rents. We argue …This paper considers the "DeFi intermediation chain"--the market structure that underlies the creation and distribution … transactions in Ethereum, we find that a 1% increase in private information advantage leads to a 1.4% increase in intermediaries …

A model of interest rate movements in response to new information on the money stock is developed.The model, which …