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I develop a model for monetary policy analysis that features significant feedback from asset prices to macroeconomic quantities. The feedback is caused by credit market imperfections, which dynamically affect how efficiently labour and capital are being used in aggregate. I then analyse what...
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Large, international banking groups have sought to centralise their cross-currency liquidity management: liquidity … emerging from global liquidity management depends on how these foreign exchange transactions settle. I analyse these risks in a … game of asymmetric information. The main result is that the transition from local to global liquidity management, and …
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