We use payroll data on 1.2 million bank employee years in the Austrian, German, and Swiss banking sector to identify … document an economically significant correlation of incentive pay with both the level and volatility of bank trading income … share in the capital markets divisions with the strength of incentive pay in unrelated bank divisions like retail banking …

random and therefore create liquidity risk, which in turn determines the supply of credit and the money multiplier. We study … illiquid loans by issuing deposits. Deposit transfers across banks must be settled using central bank reserves. Transfers are … profiting from lending and incurring greater liquidity risk. We calibrate our model to study quantitatively why banks have …

relies on such informationally-insensitive debt, firms with low quality collateral can borrow, generating a credit boom and …

The crisis of the advanced economies in 2008-09 has focused new attention on money and credit fluctuations, financial … crises, and policy responses. We study the behavior of money, credit, and macroeconomic indicators over the long run based on … half of the twentieth century as shown by a decoupling of money and credit aggregates. We show for the first time how …

standards and credit risk. …

imports. We show that credit conditions were an important channel through which the crisis affected trade volumes, by … vulnerability across sectors. Countries with higher interbank rates and thus tighter credit markets exported less to the US during … limited access to trade credit, or have few collateralizable assets. Exports of financially vulnerable industries were thus …