change is preceded by a short or shallow downturn. Policy changes increase volatility, risk premia, and correlations among … stocks. The jump risk premium associated with policy decisions is positive, on average. …

model implies that political uncertainty commands a risk premium whose magnitude is larger in weaker economic conditions …

, and an inflation channel for both QE1 and QE2, and an MBS pre-payment channel and a corporate bond default risk channel … corporate credit risk and thus corporate yields for QE1, and (b) Treasuries-only purchases in QE2 had a disproportionate effect …

risk. Current reporting standards for derivatives exposures are nevertheless inadequate for assessing these systemic risk … contributions. In this paper, I explain how a transparency standard, in contrast to the current standard, would facilitate such risk … lack of standardization, they cannot be aggregated to assess the risk to the system. I highlight the important contribution …

internalize the systematic risk costs they impose on their lenders. Because risk assessment techniques from the Basel II framework … leverage, firm leverage, and fragility. Deposit insurance and the expectation of government bailouts lead not only to risk … taking by banks, but increased risk taking by firms. Capital regulation lowers bank leverage but can lead to compensating …