The Basel Committee proposed the Net Stable Funding Ratio (NSFR) to curb excessive maturity mismatch of the banking sector. However, it remains to be ascertained as to what are the financial and real effects of the NSFR on banks' credit quality, investment, and the pass-through of monetary...

We develop a New Keynesian model where all payments between agents require bank deposits through deposits-in-advance constraints, bank deposits are created through disbursement of bank loans, and banks face a convex lending cost. At the zero lower bound on deposit rates (ZLBD), changes in policy...

The Eurozone Debt Crisis has rekindled the debate on the nexus between currency areas and fiscal sovereigns. After the crisis, much of the intellectual and political debate has been on the benefit of a fiscal union, the idea of creating a common fiscal entity that is well equipped to make...

We consider the infinite-horizon multiple retailer joint replenishment problem with first order interaction. In this model, the joint setup cost incurred by a group of retailers placing an order simultaneously consists of a group-independent major setup cost and retailer-specific minor setup...

We develop a New Keynesian model where all payments between agents require bank deposits, bank deposits are created through disbursement of bank loans, and banks face convex lending costs. At the zero lower bound on deposit rates (ZLBD), changes in policy rates affect activity through both real...

The theoretical investigation of the effectiveness of limited flexibility has mainly focused on the performance metric that is based on the maximum sales in units. However, this could lead to substantial profit losses when the maximum sales metric is used to guide flexibility designs whereas the...

Ever since the Great Financial Crisis, if not before, it has become clear that there are complex interactions between the real and nominal sectors of the economy. When do monetary and financial policy goals conflict with each other? When is monetary policy a complement to or a substitute for...

Since the Eurozone Crisis of 2010-12, a key debate on the viability of a currency union has focused on the role of a fiscal union in adjusting for country heterogeneity. However, a fully-fledged fiscal union may not be politically feasible. This paper develops a two-country international finance...

This paper studies the impact of foreign direct investment on domestic firms' innovation in China. It provides causal evidence by exploiting China's foreign direct investment deregulation in 2002 and employs a difference-in-difference estimation strategy. Using a matched firm-patent data set...