We assess the quantitative implications of the re-use of collateral on financial market leverage, volatility, and … significantly increases volatility in financial markets. When introducing limits on re-use, we find that volatility is strictly …

We assess the quantitative implications of collateral re-use on leverage, volatility, and welfare within an infinite … used to back more transactions. Re-use thus contributes to the buildup of leverage and significantly increases volatility in … financial markets. When introducing limits on re-use, we find that volatility is strictly decreasing as these limits become …

Countercyclical risk aversion can explain major puzzles such as the high volatility of asset prices. Evidence for its …

This article investigates returns and volatility linkages among stock markets, including emerging Asian (e.g., India … volatility. Finally, the Vector Autoregressive (VAR) model is used to study the transmission dynamics in the presence of … unexpected shocks. The evidence suggests that both the returns and volatility linkages exist between the emerging Asia and the …

We assess the quantitative implications of collateral re-use on leverage, volatility, and welfare within an infinite … used to back more transactions. Re-use thus contributes to the buildup of leverage and significantly increases volatility … in financial markets. When introducing limits on re-use, we find that volatility is strictly decreasing as these limits …