Business cycles imply liquidity risks for banks. This paper explores how these risks influence bank lending over the cycle. With forward-looking banks, lending cycles, credit booms and busts, or suppressed and highly fragile bank systems can emerge, depending on the magnitude of liquidity risks....

This paper investigates how business cycle volatility affects internal and external funding sources of banks. It argues that excessive credit growth, credit cycles, and bank failures are phenomena related to distinct patterns of banks’ financing options over the cycle.

This paper shows that depending on the distribution of banks' uncertain liquidity needs and on how monetary policy is implemented, frictions in the interbank market may reinforce the effectiveness of monetary policy. These frictions imply that with its lending and deposit facilities the central...

Mit einer extremen Niedrigzinspolitik, die mit negativen Einlagesätzen einhergeht, versucht die EZB, die Kreditvergabe im Euroraum zu stimulieren. Dieser Beitrag diskutiert, welchen Einfluss Veränderungen des Einlagesatzes der EZB auf die Bankenkreditvergabe haben. Es wird argumentiert, dass...

An economy with two dates is considered, one state at the ¯rst date and a ¯nite number of states at the last date. Shareholders determine production plans by voting { one share, one vote { and at ½-majority stable equilibria, alternative production plans are supported by at most ½ £ 100...

A general equilibrium model with uncertainty and production externalities is studied. In absence of markets for externalities, we look for governances and conditions under which majority voting among shareholders is likely to give rise to efficient internalization. We argue that the financial...

We consider a standard insurance economy where consumers are supposed to vote over menus of insurance contracts: A menu of contracts is majority stable if there does not exist another menu which is supported by an appropriate majority of consumers. We compute the smallest level of super majority...

In the present paper we consider the allocation of costs in connection networks. Agents have connection demands in form of pairs of locations they want to have connected. Connections between locations are costly to build. The problem is to allocate costs of networks satisfying all connection...