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How do opacity and disclosure policies impact the likelihood of debt runs and economicefficiency? I construct a dynamic … and the stateof the economy. I find that: opacity is desirable if and only if fundamentals are strong;transparency can be … more efficient even when it entails more runs; the regulator shouldcommit to disclosure except at large levels of opacity …
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the roles played by volatility, illiquidity and debt maturity in driving debt runs, as well as on firms' capital adequacy … standards and credit risk …
Persistent link: https://www.econbiz.de/10012463167
the roles played by volatility, illiquidity and debt maturity in driving debt runs, as well as on firms' capital adequacy … standards and credit risk …
Persistent link: https://www.econbiz.de/10013155020
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Liquidity backstops have important implications for financial stability. In this paper, we provide a microfoundation for the important role of liquidity backstops in mitigating runs (or, conversely, the role of the lack of liquidity backstops in exacerbating runs) based on a dynamic model of...
Persistent link: https://www.econbiz.de/10011396851
Liquidity backstops have important implications for financial stability. In this paper, we provide a microfoundation for the important role of liquidity backstops in mitigating runs (or, conversely, the role of the lack of liquidity backstops in exacerbating runs) based on a dynamic model of...
Persistent link: https://www.econbiz.de/10014352417
Liquidity backstops have important implications for financial stability. In this paper we provide a microfoundation for the important role of liquidity backstops in mitigating runs (or, conversely, the role of the lack of liquidity backstops in exacerbating runs) based on a dynamic model of debt...
Persistent link: https://www.econbiz.de/10013020995