the world and, b) heterogeneity in these regions' capacity to generate financial assets from real investments. In …

A bank or other financial institution is potentially subject to at least four types of risk: (1) Credit risk …. This paper reports a study of the interest-rate elasticity of the net worth of a commercial bank. Most of the study is … devoted to the development of the necessary methodology to measure the interest-rate elasticity (IRE) of a bank's asset …

Empirical studies suggest that fluctuations in the level and volatility of the world interest rate (as measured by the … for the world interest rate (with both level and volatility shocks) into a model of sovereign default calibrated to a … panel of emerging economies. Time variation in the world interest rate interacts with default incentives in the model and …

the world. Under every scenario, uncertainty policy is inflationary …

style of central banking affects central banks' solvency. A central bank is insolvent if its requirement to pay dividends to … Bank), and exchange-rate risk (central banks of small open economies). We find that a central bank that pays dividends … circumstances, the dividend will be negative, meaning that the government is making a payment to the bank. If the charter does not …

. Expected real interest rates and output are exogenous with respect to monetary variables, and the central bank ends up … United States in the post-World War II period suggests that the model's predictions accord reasonably well with observed … before World War I, provide an interesting contrast because interest-rate smoothing did not apply. The behavior of the …