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-ante leverage and insurance decisions are associated with aggregate demand externalities. The competitive equilibrium allocation is … constrained inefficient. Welfare can be improved by ex-ante macroprudential policies such as debt limits and mandatory insurance …
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insurance regulation. …Investors and insurance policyholders are often confronted with complex products and providers' opaque organisational … regulation therefore aims at putting in place a financial services framework that will safeguard market processes whilst also …
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