Showing 1 - 10 of 40
We analyze the effects of (not) bailing out uninsured deposits in a quantitative, general equilibrium model in which firms’ deposits are valued for their safety and uninsured deposits might be bailed out by the government. Although an important fraction of households’ deposits are uninsured,...
Persistent link: https://www.econbiz.de/10014353208
We study optimal capital requirement regulation in a dynamic quantitative model in which nonfinancial firms, as well as households, hold deposits. Firms hold deposits for precautionary reasons and to facilitate the acquisition of production inputs. Our theoretical analysis identifies a novel...
Persistent link: https://www.econbiz.de/10012900465
We study optimal capital requirement regulation in a dynamic quantitative model in which nonfinancial firms, as well as households, hold deposits. Firms hold deposits for precautionary reasons and to facilitate the acquisition of production inputs. Our theoretical analysis identifies a novel...
Persistent link: https://www.econbiz.de/10012132611
We study optimal capital requirement regulation in a dynamic quantitative model in which nonfinancial firms, as well as households, hold deposits. Firms hold deposits for precautionary reasons and to facilitate the acquisition of production inputs. Our theoretical analysis identifies a novel...
Persistent link: https://www.econbiz.de/10013213951
Persistent link: https://www.econbiz.de/10012312303
Persistent link: https://www.econbiz.de/10014513917
Persistent link: https://www.econbiz.de/10012545905
This paper evaluates two key liquidity policies in the context of financial crises— liquidity requirements and central bank liquidity injections—using a model that includes near-money assets. A trade-off arises between the benefits for financial players subject to liquidity risk and those...
Persistent link: https://www.econbiz.de/10012903096
We propose a simple model to study the efficiency of private liquidity creation by financial intermediaries. Liquidity is provided by both safe and risky debt, and liquidity crises arise when risky debt is defaulted on and stops providing liquidity services. Because of a novel externality...
Persistent link: https://www.econbiz.de/10012889838
We study how the European Central Bank’s quantitative easing (QE) program announced in January 2015 affected lending by Italian banks. Banks exposed to QE, especially the more illiquid ones, increased lending relatively more at both the intensive and extensive margins after QE. But we also...
Persistent link: https://www.econbiz.de/10013239873