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This paper identifies two types of market failures. The first concerns a coordination problem associated with panics. The problem in analysing this type of market failure from a policy perspective is that there is no widely accepted method for selecting equilibria. The second market failure...
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We survey 149 leading academic researchers on bank capital regulation. The median (average) respondent prefers a 10 … strongly an expert believes that higher capital requirements would increase the cost of bank lending. …
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