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We study the political economy of bank capital regulation from a positive and normative perspective. In a general … politicians. We show that bankers and politicians agree on lobbying contributions and capital regulation that renders banks … capital regulation standards from international agreements eliminate lobbying incentives, yielding an efficient and fair …
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regulation. Our results may inform current policy debates, such as the design of central bank collateral frameworks or the …
Persistent link: https://www.econbiz.de/10012585515
We examine financial intermediation when banks can offer deposit or loan contracts contingent on macroeconomic shocks. We show that the risk allocation is efficient if there is no workout of banking crises. In this case, banks will shift part of the risk to depositors. In contrast, under a...
Persistent link: https://www.econbiz.de/10011409445
We integrate banks and the coexistence of bank and bond financing into an otherwise standard New Keynesian framework. There are two policy-makers: a central banker, who can decide on short-term nominal interest rates, and a macroprudential policy-maker, who can vary aggregate capital...
Persistent link: https://www.econbiz.de/10011894696
regulation. Our results may inform current policy debates, such as the design of central bank collateral frameworks or the …
Persistent link: https://www.econbiz.de/10013218488
Persistent link: https://www.econbiz.de/10003875375
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