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imposed solvency constraints on banks. However, these constraints may not survive in systems competition, as systems … competition is likely to suffer from the same type of information asymmetry which induced the private market failure and which …
Persistent link: https://www.econbiz.de/10011400902
Persistent link: https://www.econbiz.de/10009710695
enhance welfare. The paper offers a new theory to explain why stress tests are generally welfare enhancing. We also offer a …
Persistent link: https://www.econbiz.de/10009674818
Persistent link: https://www.econbiz.de/10002258073
Persistent link: https://www.econbiz.de/10001636657
imposed solvency constraints on banks. However, these constraints may not survive in systems competition, as systems … competition is likely to suffer from the same type of information asymmetry which induced the private market failure and which …
Persistent link: https://www.econbiz.de/10001626513
Persistent link: https://www.econbiz.de/10001788657
We study the interplay of optimal ex-ante (macroprudential) and ex-post (monetary or fiscal stimulus) measures to respond to systemic financial crises in a tractable model of fire sales. We find that it is generally optimal to use both, rejecting the Greenspan doctrine to only intervene ex post....
Persistent link: https://www.econbiz.de/10013089016
Persistent link: https://www.econbiz.de/10012745567
imposed solvency constraints on banks. However, these constraints may not survive in systems competition, as systems … competition is likely to suffer from the same type of information asymmetry which induced the private market failure and which …
Persistent link: https://www.econbiz.de/10012470046