capitalized. We employ a set of headline facts about the build-up of such risk exposures to explain how and why LCFIs adopted this … in decades preceding the current one, allowing LCFIs to take on excessive systemic risk. We also examine alternative … banking, excess liquidity due to global imbalances and mispricing of risk due to behavioral biases have some merit as …

aggregate risk, all firms drew down bank credit lines and raised cash levels. In the second phase, which followed the adoption … risk of becoming a fallen angel, the lowest-quality BBB-rated firms behaved more similarly to non-investment grade firms …. The observed corporate behavior reveals the significant impact of credit risk on corporate cash holdings …

vaccines and related news. We construct a general equilibrium regime-switching model of repeated pandemics and stages of … vaccine progress wherein the representative agent withdraws labor and alters consumption endogenously to mitigate health risk … substantially when there is uncertainty about the frequency and duration of pandemics. Agents place almost as much value on the …

prevent infection coming from abroad. The efficient, i.e., coordinated, risk-sharing arrangement dynamically adjusts both …

aggregate risk, all firms drew down bank credit lines and raised cash levels. In the second phase, which followed the adoption … risk of becoming a fallen angel, the lowest-quality BBB-rated firms behaved more similarly to non-investment grade firms …. The observed corporate behavior reveals the significant impact of credit risk on corporate cash holdings …

COVID-19. In the first phase of extreme precaution and heightened aggregate risk, all firms drew down bank credit lines and … switched to capital markets to raise cash. Consistent with the risk of becoming a fallen angel, the lowest-quality BBB … of credit risk on corporate cash holdings …