This paper presents an integrated overview of the literature linking institutions, financial
development, and economic growth. From the large body of research on institutional …

We explore two issues triggered by the crisis. First, in most advanced countries, output
remains far below the pre-recession trend, suggesting hysteresis. Second, while inflation …

We develop an infinite horizon macroeconomic model of banking that allows for liquidity
mismatch and bank runs. Whether a bank run equilibrium exists depends on bank balance …

There has been considerable progress in developing macroeconomic models of banking
crises. However, most of this literature focuses on the retail sector where banks obtain …

Using panel data of 42 countries from 2001 to 2019, we examine whether political
uncertainty (caused by uncertainty about national elections) explains variations in cross …

I model an open-end mutual fund investing in illiquid assets and show that the fund's
endogenous cash management can generate shareholder runs even with a flexible NAV …

We first develop a theoretical model that shows that the likelihood of a collapse of the
banking industry of a developing country increases, as the joint prevalence of large …

When policy makers have limited commitment power, self-fulfilling bank runs can arise as an
equilibrium phenomenon. We study how such banking panics unfold in a version of the …

We examine how the possibility of a bank run affects the investment decisions made by a
competitive bank. Cooper and Ross [1998. Bank runs: liquidity costs and investment …

Emerging economies have accumulated very large foreign reserve holdings since the turn of
the century. We argue that this policy is an optimal response to an increase in foreign debt …