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Will the world run out of "safe assets" and what would be the consequences on global financial stability? We argue that … in a world with competing private stores of value, the global economic system tends to favor the riskiest ones. Privately …
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"This paper conducts the first empirical assessment of theories concerning relationships among risk taking by banks, their ownership structures, and national bank regulations. We focus on conflicts between bank managers and owners over risk, and show that bank risk taking varies positively with...
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