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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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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...
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regulation. Our results may inform current policy debates, such as the design of central bank collateral frameworks or the …
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This paper provides a macroeconomic perspective for government interventions in banking crises. Such crises occur when a large number of banks fall to meet capital requirements or are insolvent. Using a macroeconomic model with financial intermediation, our analysis suggests that strict...
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