Suchergebnisse

The financial crisis which began in the summer of 2007 has its roots in the under-estimation of systemic risk, in turn due to the absence of a macroprudential approach to the design of financial regulation and macroeconomic policies, as well as the excessively optimistic judgment of the originate-to-distribute model of banking. The ongoing process of reform of the global financial system aims to correct these mistakes. After a brief overview of the challenges ahead, this paper focuses on issues regarding the regulatory treatment of liquidity risk, looking at them through the eyes of the liquidity insurance arrangement proposed in Perotti and Suarez (2009).

"We consider a directed search model in which workers differ in productivity. Productivity becomes observable to firms after assessing their workers on the job, but it is not verifiable. Firms with vacancies choose between posting a noncontingent wage and leaving wages subject to bargaining with the worker. Under wage bargaining, firms cannot optimize the trade-off between paying higher wages and having a larger probability of filling vacancies. But wage bargaining makes wages increasing in worker productivity and so may allow firms to attract better workers into the vacancy. When workers' heterogeneity is large and bargaining powers come close to satisfying Hosios's rule, firms opt for bargaining. Yet, equilibria with bargaining fail to maximize aggregate net income and sometimes are not constrained Pareto optimal. " (Author's abstract, IAB-Doku) ((en))

Funding agency: Spanish government (grant nr: ECO2011-26308 and ECO2014-59262) ; We consider a dynamic model in which receiving support from the lender of last resort (LLR) may help banks to weather investor runs. We show the need for regulatory liquidity standards when the underlying social trade-offs make the uninformed LLR inclined to support troubled banks during a run. Liquidity standards increase the time available before the LLR must decide on supporting the bank. This facilitates the arrival of information on the bank's financial condition and improves the efficiency of the decision taken by the LLR, a role that can be modified but not replaced with the use of capital regulation. ; authorsversion ; published