This paper presents a formal analysis of the effects of asset backed securisation on the capital composition of banking institutions. A model of a banking firm is presented that highlights the interrelationship between deposit insurance, capital requirements and securitisation.

The paper presents a simple theory of intraday behavior in the interbank market.

It is known that discretionary policy may give rise to an infaltionary bias if wages are negotiated in nominal terms. It has recently been argued that this bias can be eliminated, and welfare maximized, by the appointment of a central banker who does not care at all about inflation.

We develop a model of financially distressed firm to analyze the implications of a bank debt restructuring when the operational characteristics of the firm's project for the post-distress period are endogenously determined as part of the workout.

We survey modern models of delegation which assume that a boss and subordinate pursue their own goals. Among the major themes covered are thefolling: the conditions under which the boss will prefer to delegate versus those in which she will prefer to retain authority; the ways in which a boss...