This paper examines empirically U.S. broad money demand emphasizing the role of financial market risk. We find that … money demand rises with the liquidity risk of stock markets or the credit risk of corporate bond markets. After controlling … for the effect of financial market risk, money demand becomes relatively stable over the last 35 years. At the sectoral …

view that monetary policy easing induces greater risk-taking by banks but also shows that the relationship between real … interest rates and banking risk is more complex. Ultimately, it depends on how much skin in the game banks have. The central …

medium-term bank credit risk in the United States, the euro area, and the United Kingdom. Second, in panel regressions using … U.S. banks’ balance sheet information, we show that bank profitability and risk taking are ambiguously affected, while …