The events from the 2007-2009 financial crisis have raised concerns that the failure of large financial institutions can lead to destabilizing fire sales of assets. The risk of fire sales is related to exemptions from bankruptcy's automatic stay provision enjoyed by a number of financial...

[...]This article discusses how the Federal Reserve manages itscredit risk exposure from daylight overdrafts. We first presenta simple economic framework for thinking about the causes ofcredit risk and the possible tools that lenders have to help them manage it...

"I present an environment for which both outside and inside money are essential as means of payment. The key model feature is that there is imperfect monitoring of issuers of inside money. I use a random matching model of money where some agents have private trading histories and others have...