The introduction of a central bank digital currency (CBDC) allows the central bank to engage
in large-scale intermediation by competing with private financial intermediaries for deposits …

This paper endogenizes intervention in financial crises as the strategic negotiation between
a regulator and creditors of distressed banks. Incentives for banks to contribute to a …

We modify the 1983 Diamond and Dybvig model so that banks offer liquidity services to
depositors, raise equity funding, make risky loans, and invest in safe, liquid assets. Banks …

This paper studies the optimal determination of deposit insurance when bank runs are
possible. We show that the welfare impact of changes in the level of deposit insurance …

What is the effect of Central Bank Digital Currency (CBDC) on financial stability? We answer
this question by studying a model of financial intermediation with an endogenously …

Money is debt that circulates with no questions asked. Stablecoins are a new form of private
money that circulate with many questions asked. We show how stablecoins can maintain a …

What is the effect of Central Bank Digital Currency (CBDC) on financial stability? We answer
this question by studying a model of financial intermediation with remunerated CBDC as …

How do resolution frameworks affect the private restructuring of distressed banks? We
model a distressed bank's shareholders and creditors negotiating a restructuring given …

In settings of runs on financial firms, policy makers have developed different forms of policy
intervention for stopping, easing or preventing runs. This paper characterizes types of policy …

Liquidity requirements for commercial banks improve risk-sharing for depositors.
Nevertheless, shadow banks, issuing securities with lower liquidity, operate outside such …