A trader who receives a signal about a future public announcement can exploit this private information twice. First, when he receives his signal, and second, at the time of the public announcement. The second round advantage occurs because the early-informed trader can best infer the extent to...

We provide a model that links an asset's market liquidity - i.e., the ease with which it is traded - and traders' funding liquidity - i.e., the ease with which they can obtain funding. Traders provide market liquidity, and their ability to do so depends on their availability of funding....

This paper studies predatory trading: trading that induces and/or exploits other investors' need to reduce their positions. We show that if one trader needs to sell, others also sell and subsequently buy back the asset. This leads to price overshooting, and a reduced liquidation value for the...

A reduction in inflation can fuel run-ups in housing prices if people suffer from money illusion. For example, investors who decide whether to rent or buy a house by simply comparing monthly rent and mortgage payments do not take into account that inflation lowers future real mortgage costs. We...

Frontmatter -- Contents -- Introduction -- Part I. Power Shifts and German-French Differences -- 2. Power Shifts -- 3. Historical Roots of German-French Differences -- 4. German-French Differences in Economic Philosophies -- Part II. Monetary and Fiscal Stability: The Ghost of Maastricht -- 5....

This book offers insights into the development of social welfare policies in Britain. By identifying continuities in welfare policy, practice and thought throughout history, it offers the potential for the development of new thinking, policy making and practice.