We argue that the risk of banks is hard for outsiders to judge because the risk of their mostly financial assets is … disagreement, but only at trading banks, where the risk of asset shifting may be most severe. …

This paper investigates systemic risk in multilateral netting payments systems. A four-period model is constructed to … decrease systemic risk. The central bank's role as provider of liquidity to the financial system is investigated in the context …

efficient risk-sharing, negatively correlated with relative consumptions across countries. This paper shows that a model with … international transmission of productivity shocks generate the observed degree of risk-sharing: one associated with an improvement … transmission pattern. These findings are at odds with the presumption that terms-of-trade movements foster international risk-pooling. …

An interest charge is made up of an award for waiting known as the real rate of interest, a premium for risk and …