Narrow search
Showing 1 - 10 of 20,546
Cover Image
Endogenous Collateral Constraints and the Leverage Cycle
Fostel, Ana; Geanakoplos, John - In: Annual Review of Economics 6 (2014) 1, pp. 771-799
We review the theory of leverage developed in collateral equilibrium models with incomplete markets. We explain how leverage tends to boost asset prices and create bubbles. We show how leverage can be endogenously determined in equilibrium and how it depends on volatility. We describe the...
Persistent link: https://www.econbiz.de/10010886189
Cover Image
The Dynamics of Financially Constrained Arbitrage
Gromb, Denis; Vayanos, Dimitri - C.E.P.R. Discussion Papers - 2015
, liquidity, and asset prices. Arbitrageurs exploit price discrepancies between assets traded in segmented markets, and in doing … so provide liquidity to investors. A collateral constraint limits their positions as a function of capital. We show that … markets, liquidity in each market generally becomes less volatile, but the reverse may hold for aggregate liquidity because of …
Persistent link: https://www.econbiz.de/10011184076
Cover Image
Betting the House
Jordà, Òscar; Schularick, Moritz; Taylor, Alan M. - C.E.P.R. Discussion Papers - 2014
Is there a link between loose monetary conditions, credit growth, house price booms, and financial instability? This paper analyzes the role of interest rates and credit in driving house price booms and busts with data spanning 140 years of modern economic history in the advanced economies. We...
Persistent link: https://www.econbiz.de/10011145419
Cover Image
Recessions, Growth and Financial Crises
Dwyer, Gerald P; Devereux, John; Baier, Scott L.; … - Volkswirtschaftliche Fakultät, … - 2013
We examine the relationship of banking crises with economic growth and recessions. Our data cover 21 economies from around the world, most from 1870 to 2009 with the rest starting in 1901 or earlier. The data include capital investment and human capital formation. We have two major findings....
Persistent link: https://www.econbiz.de/10011259781
Cover Image
Cross-Border Liquidity, Relationships and Monetary Policy: Evidence from the Euro Area Interbank Crisis
Abbassi, Puriya; Bräuning, Falk; Fecht, Falko; … - C.E.P.R. Discussion Papers - 2015
We analyze the impact of financial crises and monetary policy on the supply of wholesale funding liquidity, and also on … on interbank access and volume is stronger than on spreads. Liquidity supply restrictions are exacerbated for cross … dispersion substantially decreases when the Eurosystem promises unlimited access to liquidity at a fixed price in October 2008 …
Persistent link: https://www.econbiz.de/10011196038
Cover Image
House Prices, Heterogeneous Banks and Unconventional Monetary Policy Options
Smith, Andrew Lee - Department of Economics, University of Kansas - 2013
Bank regulators acknowledge that large U.S. commercial banks allocate considerably more resources to originating and trading off-balance sheet assets than their smaller counter parts. In this paper: (i) I show the asset concentration in these large banks moves closely with home prices due to the...
Persistent link: https://www.econbiz.de/10010705596
Cover Image
Cross-border liquidity, relationships and monetary policy: Evidence from the Euro area interbank crisis
Abbassi, Puriya; Bräuning, Falk; Fecht, Falko; … - Deutsche Bundesbank - 2014
We analyze the impact of financial crises and monetary policy on the supply of wholesale funding liquidity, and also on … on interbank access and volume is stronger than on spreads. Liquidity supply restrictions are exacerbated for cross … price dispersion substantially decreases when the Eurosystem promises unlimited access to liquidity at a fixed price in …
Persistent link: https://www.econbiz.de/10011161234
Cover Image
House prices, heterogeneous banks and unconventional monetary policy options
Smith, Andrew Lee - Federal Reserve Bank of Kansas City - 2014
self-reinforcing credit/liquidity crunch. When placed within a traditional business cycle model, this - financial structure …
Persistent link: https://www.econbiz.de/10011170305
Cover Image
The Labor Market Consequences of Financial Crises With or Without Inflation: Jobless and Wageless Recoveries
Calvo, Guillermo; Coricelli, Fabrizio; Ottonello, Pablo - C.E.P.R. Discussion Papers - 2012
This paper offers empirical evidence showing that, relative to "normal" recessions, financial crises hit the labor market by either enhancing the degree of joblessness and/or by further depressing the real wage – a situation that the paper labels "wageless recovery." This holds for a sample of...
Persistent link: https://www.econbiz.de/10011084561
Cover Image
Financial crises and exchange rate policy
Fornaro, Luca - Department of Economics and Business, Universitat … - 2014
This paper studies exchange rate policy in a small open economy model featuring an occasionally binding collateral constraint and Fisherian deflation. The goal is to evaluate the performance of alternative exchange rate policies in sudden stop-prone economies. The key element of the analysis is...
Persistent link: https://www.econbiz.de/10011099199