Publications

We present a model of an economy with heterogeneous banks that may be funded with uninsured deposits and equity capital. Capital serves to ameliorate...

Financial market liquidity has become increasingly fragmented across multiple trading platforms. We propose an intuitive welfare-based market quality...

Central banks frequently lead the macroprudential policy implementation. The hope is that their credibility in conquering inflation might rub off on...

The availability of credit varies over the business cycle through shifts in the leverage of financial intermediaries. Empirically, we find that...

The book uses economic theory, finance, mathematical modelling, risk theory, and policy to posit a comprehensive, coherent and current economic...

Icelandic voters recently ejected its post-Crisis government – a government that successfully avoided economic collapse when the odds were stacked...

One aspect of the Cypriot crisis resolution is of particular concern. As authorities fear that anyone with money in Cyprus will want to take it out as...

Cyprus has imposed temporary capital controls. This column sheds light on how temporary and how damaging they are likely to be, based on Iceland’s...

Is the fact that different banks have different risk models problematic? Contrary to the Basel Committee and the European Banking Authority, this...

SRC researchers were involved in a study that explores how computer generated trading in financial markets will evolve over the next 10 years. The...

We study managerial incentive provision under moral hazard in a firm subject to stochastic growth opportunities. In our model, managers are dismissed...