We develop a mean field model of interbanking borrowing and lending activities. Each bank borrows from or lends to …

the role of the bank rescues in igniting the sovereign debt crisis and reviews approaches to detect early warning signals …

We develop a theoretical model examining the financial stability policy of a central bank serving as both the lender of … last resort and the regulator of the financial system. The model accommodates the possibility of financial contagion … the existence of a substitution effect between reducing the expected scope of a central bank's assistance to an …