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 …

We study how introducing a central bank digital currency (CBDC) would affect the stability of
the banking system. We present a model that captures a concern commonly raised in policy …

The article shows that time-consistent, imperfectly targeted support to distressed institutions
makes private leverage choices strategic complements. When everyone engages in maturity …

We develop a tractable model of banks' liquidity management with an over‐the‐counter
interbank market to study the credit channel of monetary policy. Deposits circulate randomly …

This paper shows the existence of a central bank trilemma. When a central bank is involved
in financial intermediation, either directly through a central bank digital currency (CBDC) or …

This chapter studies how incomplete information helps accommodate frictions in
coordination, leading to novel insights on the joint determination of expectations and …

Should policy makers be prevented from bailing out investors in the event of a crisis? I study
this question in a model of financial intermediation with limited commitment. When a crisis …

Foreign currency debt is considered a source of financial instability in emerging markets. We
propose a theory in which liability dollarization arises from an insurance motive of domestic …

The purpose of this paper is to discuss some of the models used in New Monetarist
Economics, which is our label for a body of recent work on money, banking, payments …

I review the state of the art of the academic theoretical and empirical literature on the
potential trade-off between competition and stability in banking. There are two basic …