their investors. We show the bank has to have a fragile capital structure, subject to bank runs, in order to perform these … functions. Far from being an aberration to be regulated away, the funding of illiquid loans by a bank with volatile demand … such as narrow banking and bank capital requirements …

policy is non-targeted. The ex post benefits from a monetary bailout accrue in proportion to the number amount of leverage … bailout instruments is endogenous and characterize the structure of optimal bailouts …

We examine banking regulation in a macroeconomic model of bank runs. We construct a general equilibrium model where …

-sector-time panels to assess how different funding structures are related to financial stress. A higher share of funding from non-bank …

recession caused by other forces. Based on a VAR and new data on the sources of bank failures in the 1930s from Richardson (2007 …), we find that illiquidity shocks played a key role in explaining the bank failures during the Friedman and Schwartz …

information analysis, this paper outlines what signals a central bank might look for to determine if a financial crisis is …

macroprudential tax revenue in a bailout fund used for stimulus measures is undesirable …