Showing 1 - 10 of 38
We describe a new mechanism that explains the transmission of liquidity shocks from one security to another ("liquidity spillovers"). Dealers use prices of other securities as a source of information. As prices of less liquid securities convey less precise information, a drop in liquidity for...
Persistent link: https://www.econbiz.de/10009003369
The paper analyzes a very stylized model of crises and demonstrates how the degree of strategic complementarity in the actions of investors is an important determinant of fragility. It is shown how the balance sheet composition of a financial intermediary, parameters of the information structure...
Persistent link: https://www.econbiz.de/10009147398
of the state's extractive technology. We posit further that this extractive technology is determined by the transparency … transparency of the new farming technology. We then apply our theory to explain key institutional features that distinguished …
Persistent link: https://www.econbiz.de/10009283392
We propose a theory by which geographic variations in the transparency of the production process explain cross … geography and these institutions, we posit, is via the effect of transparency on the state's extractive capacity. We apply our …
Persistent link: https://www.econbiz.de/10011083761
How does increasing globalization affect corporate transparency? Freer trade represents two facets and in theory has … ambiguous effects on corporate transparency. On the one hand, by exposing firms to more product market competition, it could …, it may promote more transparency. Rather than simply estimating a net effect, this paper pursues an approach that allows …
Persistent link: https://www.econbiz.de/10011083813
Dealers in over-the-counter securities form networks to mitigate search frictions. The audit trail for municipal bonds shows the dealer network has a core-periphery structure. Central dealers are more efficient at matching buyers and sellers than peripheral dealers, which shortens intermediation...
Persistent link: https://www.econbiz.de/10011084269
How does transparency, a key feature of central bank design, affect the deliberation of monetary policymakers? We … (particularly Latent Dirichlet Allocation) to measure the effect of increased transparency on debate. Commentators have hypothesized … the career concerns literature uncovers evidence for both effects. However, the net effect of increased transparency …
Persistent link: https://www.econbiz.de/10011084486
In choosing transparency, firms must trade off the benefits from better access to finance against the cost of a greater … model’s predictions: First, investment and access to finance are positively correlated with accounting transparency …, especially in firms that depend more on external finance, and are negatively correlated with tax pressure. Second, transparency …
Persistent link: https://www.econbiz.de/10011084492
We introduce a new type of incentive contract for central bankers: inflation forecast contracts, which make central bankers’ remunerations contingent on the precision of their inflation forecasts. We show that such contracts enable central bankers to influence inflation expectations more...
Persistent link: https://www.econbiz.de/10011084494
Stanley Fischer is a rarity among economic policymakers. He came to the policy world as an internationally recognized intellectual leader on macroeconomic theory and policy. He confronted numerous emerging market crises, including the globally systemic Asian crisis, as the IMF’s First Deputy...
Persistent link: https://www.econbiz.de/10011083383