Similar Search Results

Mandatory disclosure and financial contagion

Alvarez, Fernando; Barlevy, Gadi - 2014

common knowledge that some banks have incurred losses but not which ones. We develop a model that features contagion, meaning … of contagion is large, it is possible for no information to be disclosed in equilibrium but for mandatory disclosure to … increase welfare by allowing investment that would not have occurred otherwise. Absent contagion, mandatory disclosure cannot …

Persistent link: https://www.econbiz.de/10010352166

A comment on monetary policy and rational asset price bubbles

Allen, Franklin; Barlevy, Gadi; Gale, Douglas - 2023

Galí (2014) showed that a monetary policy rule that raises interest rates in response to bubbles can paradoxically lead to larger bubbles. This comment shows that a central bank that wants to dampen bubbles can always do so by raising interest rates aggressively enough. This result is different...

Persistent link: https://www.econbiz.de/10014480521

Toward an understanding of crises episodes in Latin America: A post-Keynesian approach

Pérez Caldentey, Esteban; Vernengo, Matías - 2012

Conventional wisdom about the business cycle in Latin America assumes that monetary shocks cause deviations from the optimal path, and that the triggering factor in the cycle is excess credit and liquidity. Further, in this view the origin of the contraction is ultimately related to the excesses...

Persistent link: https://www.econbiz.de/10010318631

Asset returns and financial fragility

Li, Yang - 2016

What configuration of asset returns will make the banking system most susceptible to a self-fulfilling run? I study this question in a version of the model of Diamond and Dybvig (1983) with limited commitment and a non-trivial portfolio choice. I show that the relationship between the returns on...

Persistent link: https://www.econbiz.de/10011687917

E many pluribus unum: A behavioural macro-economic agent based model

Tettamanzi, Michele - 2017

In this paper we develop a Hybrid Macroeconomic ABM. The economy is populated with firms heterogeneous in term of financial fragility, measured via the Equity Ratio. Firms are maximizing profit by choosing capital, which can not be raised on the stock market. Therefore they have to rely on a...

Persistent link: https://www.econbiz.de/10012059354

The Minskyan system, Part I: Properties of the Minskyan analysis and how to theorize and model a monetary production economy

Temoigne, Eric - 2006

This is the first part of a three-part analysis of the Minskyan framework. Via an extensive review of the literature, this paper looks at 12 essential elements necessary to get a good understanding of Minsky's theory, and argues that those elements are central to comprehend how a monetary...

Persistent link: https://www.econbiz.de/10010266449

Extending Minsky's classifications of fragility to government and the open economy

Wray, L. Randall - 2006

Minsky's classification of fragility according to hedge, speculative, and Ponzi positions is well-known. He wrote about fragile positions of individual firms and of the economy as a whole, with the economy transitioning naturally from a robust financial structure (dominated by hedge units) to a...

Persistent link: https://www.econbiz.de/10010266459

The Minskyan system, Part II: Dynamics of the Minskyan analysis and the financial fragility hypothesis

Temoigne, Eric - 2006

This is the second part of a three-part analysis of the Minskyan framework. It studies in detail the dynamics at the root of the endogenous financial weakening of capitalist economic systems. This part combines the properties presented in part I with other important concepts, such as the paradox...

Persistent link: https://www.econbiz.de/10010266461

The Minskyan system, Part III: System dynamics modeling of a stock flow-consistent Minskyan model

Temoigne, Eric - 2006

This is the last part of a three-part analysis of the Minskyan Framework. The paper presents a model that studies some of the features presented in Parts I and II. The model is Post-Keynesian in nature and puts a large emphasis on the role of conventions and the importance of the financial side....

Persistent link: https://www.econbiz.de/10010266477

On the Minskyan business cycle

Ertürk, Korkut A. - 2006

The essential insight Minsky drew from Keynes was that optimistic expectations about the future create a margin, reflected in higher asset prices, which makes it possible for borrowers to access finance in the present. In other words, the capitalized expected future earnings work as the...

Persistent link: https://www.econbiz.de/10010266484

1
2
3
4
5
6
7
8
9
10
Next
Last