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 study the effects of regulatory interventions and capital support (bailouts) on banks'
liquidity creation. We rely on instrumental variables to deal with possible endogeneity …

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 …

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 …

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 …

We review the theory of deposit insurance, highlighting the underlying assumptions that
were not satisfied during the recent financial crisis and that may have led to serious policy …

Using discriminant analysis, we trace the US bank failures during the period from 2007 to
2010 to poor investment decisions and large exposure to systemic risk channels …

This article argues that a pressing goal for macroeconomics is to incorporate financial
considerations, but we need models with solid microfoundations. In particular, the use of …

We investigate how coordination requirement, measured by the coordination parameter,
affects the occurrence of miscoordination-based bank runs in controlled laboratory …