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| Registros recuperados: 10 | |
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| Farhi, Emmanuel; Tirole, Jean. |
| The paper elicits a mechanism by which private leverage choices exhibit strategic complementarities through the reaction of monetary policy. When everyone engages in maturity transformation, authorities have little choice but facilitating refinancing. In turn, refusing to adopt a risky balance sheet lowers the return on equity. The key ingredient is that monetary policy is non-targeted. The ex post benefits from a monetary bailout accrue in proportion to the number amount of leverage, while the distortion costs are to a large extent fixed. This insight has important consequences. First, banks choose to correlate their risk exposures. Second, private borrowers may deliberately choose to increase their interest-rate sensitivity following bad news about... |
| Tipo: Working or Discussion Paper |
Palavras-chave: Monetary Policy; Funding Liquidity Risk; Strategic Complementarities; Macro-Prudential Supervision; Financial Economics; E44; E52; G28. |
| Ano: 2009 |
URL: http://purl.umn.edu/52545 |
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| Tirole, Jean. |
| The recent crisis was characterized by massive illiquidity. This paper reviews what we know and don't know about illiquidity and all its friends: market freezes, fire sales, contagion, and ultimately insolvencies and bailouts. It first explains why liquidity cannot easily be apprehended through a single statistics, and asks whether liquidity should be regulated given that a capital adequacy requirement is already in place. The paper then analyzes market breakdowns due to either adverse selection or shortages of financial muscle, and explains why such breakdowns are endogenous to balance sheet choices and to information acquisition. It then looks at what economics can contribute to the debate on systemic risk and its containment. Finally, the paper takes a... |
| Tipo: Working or Discussion Paper |
Palavras-chave: Liquidity; Contagion; Bailouts; Regulation; Financial Economics; E44; E52; G28. |
| Ano: 2010 |
URL: http://purl.umn.edu/91011 |
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| Kugler, Peter; Weder, Beatrice. |
| This paper contributes to the debate about the puzzle of the Swiss Interest Rate Island. It starts out by establishing some stylized facts about the nature of the puzzle. First it shows that long run real returns on Swiss Euro Deposits have been significantly lower than in any other major currency. A decomposition of return differentials into deviations from uncovered interest rate parity and deviations from purchasing power parity reveals that the former contributes most to the puzzle. Two implications follow from these stylized facts: (i) since the puzzle is present in Euro Deposit rates it cannot be due to local factors such as banking secrecy, and (ii) solutions to the puzzle have to provide an explanation for a long run failure of uncovered interest... |
| Tipo: Working or Discussion Paper |
Palavras-chave: Financial Economics; E43; E44; G15. |
| Ano: 2002 |
URL: http://purl.umn.edu/26190 |
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| Law, Siong Hook; Habibullah, Muzafar Shah. |
| This paper examines the effects of financial development and institutional quality on economic performance in the East Asian economies using the panel cointegration and panel group mean fully modified OLS estimations. The empirical results based on the Solow growth model indicate that well developed institutional quality and financial market lead to the improved output per capita in East Asian economies. The effect of financial development on economic performance is larger when the financial system is embedded within a sound institutional framework. Thus, institutional improvements in these economies are important, not only in promoting economic development but also to deliver the benefits of financial development. |
| Tipo: Journal Article |
Palavras-chave: Financial development; Quality of institutions; Economic performance; Financial Economics; G20; E44. |
| Ano: 2006 |
URL: http://purl.umn.edu/50150 |
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| Valckx, Nico. |
| This paper applies the Campbell-Shiller (1988) methodology to estimate a price dividend model with volatility and inflation risk, extending existing models in this field. The model fits the data well over the period 1979-2002 for the Euro Area, but less so for the U.S. The latter is interpreted as reflecting fads and is borne out by a decomposition of the price dividend ratio into a fundamental and bubble part. Finally, it is shown that deviations from fundamentals enter significantly in the Fed's interest rate reaction function but at the cost of destabilising monetary policy. Alternatively, in case that Fed policy remained stable, there was not much of attention to asset bubbles. For the Euro Area, historically, the reaction function does not appear to... |
| Tipo: Working or Discussion Paper |
Palavras-chave: Dividend price ratio; Dynamic Gordon model; Asset price bubbles; Taylor rule; Financial Economics; E44; G12. |
| Ano: 2003 |
URL: http://purl.umn.edu/26301 |
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| Jia, Xiangping; Guo, Pei. |
| Historically, China's political attempts to provide access to rural credit has met with mixed results and an institutional structure that often strays from intended policy goals. There has been a close correspondence between financial depression and many policy-driven financial institutions that dominated the rural financial system in China. More recently, ongoing reforms are dedicated towards a gradual liberalization within the system. In this study, we explore the context of agricultural transition and political process as defined by the various interlinkages across the Chinese rural financial system. We find that there has been negligible progress in the evolution of the rural financial market in China. The policy-led financial institutions ended up as... |
| Tipo: Conference Paper or Presentation |
Palavras-chave: Rural finance; Institutions; Intervention; Gradualism; China; Financial Economics; E44; N25; D72; Q14. |
| Ano: 2007 |
URL: http://purl.umn.edu/7944 |
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| Registros recuperados: 10 | |
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