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How do opacity and disclosure policies impact the likelihood of debt runs and economicefficiency? I construct a dynamic model where debt yields are endogenous and mappedexplicitly to the degree of transparency, the regulatory disclosure regime and the stateof the economy. I find that: opacity is...
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is to blame.Between Debt and the Devil challenges the belief that we need credit growth to fuel economic growth, and that … rising debt is okay as long as inflation remains low. In fact, most credit is not needed for economic growth-but it drives … the growth and allocation of credit creation, and why debt needs to be taxed as a form of economic pollution. Banks need …
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