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This paper studies how structural transformation exacerbates financial crises. Using newly collected data, I document the persistent effect of credit supply shocks on local economies during the Great Depression. Cities with access to an unusually generous branching network were no different from...
Persistent link: https://www.econbiz.de/10012857844
This paper identifies how bank branching benefited local economies during the Great Depression. Using archival data and … narrative evidence, I show how Bank of America's branch network in 1930s California created an internal capital market to … competing banking offices. The bank's presence caused smaller city property value contractions and stronger recoveries through …
Persistent link: https://www.econbiz.de/10014421204
allocation, where distance is bank-affiliate specific and depends on the ex ante relative importance of such locations as local …
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many cases, central bank balance sheets have undergone extremely strong growth. The actions by central banks raise a number …
Persistent link: https://www.econbiz.de/10013130409
We build a macro-finance model of shadow banking: the transformation of risky assets into securities that are money-like in quiet times but become illiquid when uncertainty spikes. Shadow banking economizes on scarce collateral, expanding liquidity provision in booms, boosting asset prices and...
Persistent link: https://www.econbiz.de/10012974095
loan scale. A financial crisis, simulated as an abrupt decline in the collateral value of bank assets, triggers a flight to …
Persistent link: https://www.econbiz.de/10013048760