This paper investigates the effects of SEC intervention from July 15, 2008 on the stability of “too big to fail” corporations. We show that:1. SEC policy intervention maps to shocks in stock market variables, 2. stock market variables and a policy intervention indicator variable are...

This paper studies monetary policy transmission in China's peer-to-peer lending market. Using spectral measures of causality, we explore the impacts of Chinese monetary policy shocks on China's P2P market interest rates and lending amounts. The estimation results indicate significant spectral...

This paper identifies two types of market failures. The first concerns a coordination problem associated with panics. The problem in analysing this type of market failure from a policy perspective is that there is no widely accepted method for selecting equilibria. The second market failure...