decreasing their leverage which in turn amplifies the adverse selection problem in asset markets. In the extreme case, this leads …' long-term leverage choices and an "interim" inefficiency because it distorts agents' short-term liquidity management. I …

Bank leverage constraints can emerge from regulatory capital requirements as well as from central bank collateral … unique collateral leverage channel, which cannot be replicated by standard capital requirements. Through this channel, banks … loans with tighter monitoring of firms. The collateral leverage channel can improve welfare beyond standard bank capital …

affect the macroeconomic dynamics depending on banks' behaviour as for their leverage ratio. We first show that the level of … banks' leverage - which may be imposed by banks regulation - affects the steady state level of output, employment and … effects on the macroeconomic dynamics: passive leverage results to be shock absorbing and capable of neutralizing an initial …