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Loanable funds vs money creation in banking: A benchmark result

Faure, Salomon A.; Gersbach, Hans - 2017

We establish a benchmark result for the relationship between the loanablefunds and the money-creation approach to banking. In particular, we show that both processes yield the same allocations when there is no uncertainty and thus no bank default. In such cases, using the much simpler...

Persistent link: https://www.econbiz.de/10011764472

Money creation and destruction

Faure, Salomon; Gersbach, Hans - 2016

capital regulation in a general equilibrium setting. There are two types of money created and destructed: bank deposits, when … monetary policy or capital regulation. When prices are rigid, we identify the circumstances in which money creation is … excessive or breaks down and the ones in which an adequate combination of monetary policy and capital regulation can restore …

Persistent link: https://www.econbiz.de/10011558083

Endogenous systemic liquidity risk

Cao, Jin; Illing, Gerhard - Center for Financial Studies - 2008

Traditionally, aggregate liquidity shocks are modelled as exogenous events. Extending our previous work (Cao & Illing, 2007), this paper analyses the adequate policy response to endogenous systemic liquidity risk. We analyse the feedback between lender of last resort policy and incentives of...

Persistent link: https://www.econbiz.de/10010958805

Regulation and Competition in German Banking: An Assessment

Fischer, Karl-Hermann; Pfeil, Christian - Center for Financial Studies - 2003

deposit customers. In the past, bank regulation has often been blamed for undermining competition and the functioning of … tries to shed some light on the historical development and current state of bank regulation in Germany. In so doing, it … tries to embed the analysis of bank regulation in a more general industrial organization framework. For every regulated …

Persistent link: https://www.econbiz.de/10010986452

Regulation and Competition in German Banking: An Assessment

Fischer, Karl-Hermann; Pfeil, Christian - Center for Financial Studies - 2003

Persistent link: https://www.econbiz.de/10005022411

Contagious stablecoins?

van Buggenum, Hugo; Gersbach, Hans; Zelzner, Sebastian - 2024

when regulation prevents interest payments on stablecoins. …

Persistent link: https://www.econbiz.de/10014492831

Back to gold: Sterling in 1925

Gerlach, Stefan; Kugler, Peter - 2015

Expectations of Sterling returning to Gold have been disregarded in empirical work on the US dollar - Sterling exchange rate in the early 1920s. We incorporate such considerations in a PPP model of the exchange rate, letting the probability of a return to gold follow a logistic function. We draw...

Persistent link: https://www.econbiz.de/10011335449

Sovereign risk, bank funding and investors' pessimism

Faia, Ester - 2016

Data show that sovereign risk reduces liquidity, increases funding cost and risk of banks highly exposed to it. I build a model that rationalizes this fact. Banks act as delegated monitors and invest in risky projects and in risky sovereign bonds. As investors hear rumors of increased sovereign...

Persistent link: https://www.econbiz.de/10011541796

Credit risk transfers and the macroeconomy

Faia, Ester - Center for Financial Studies - 2010

The recent financial crisis has highlighted the limits of the 'originate to distribute' model of banking, but its nexus with the macroeconomy and monetary policy remains unexplored. I build a DSGE model with banks (along the lines of Holmström and Tirole [28] and Parlour and Plantin [39] and...

Persistent link: https://www.econbiz.de/10010986438

Modeling bond yields in finance and macroeconomics

Diebold, Francis X.; Piazzesi, Monica; Rudebusch, Glenn D. - Center for Financial Studies - 2005

From a macroeconomic perspective, the short-term interest rate is a policy instrument under the direct control of the central bank. From a finance perspective, long rates are risk-adjusted averages of expected future short rates. Thus, as illustrated by much recent research, a joint...

Persistent link: https://www.econbiz.de/10010958495