21st Century Monetary Policy takes readers inside the Federal Reserve, explaining what it
does and why. In response to the COVID-19 pandemic, the Federal Reserve deployed an …

How does monetary policy impact upon macroprudential regulation? This paper models
monetary policy's transmission to bank risk, and its interaction with a regulator's optimization …

Why should monetary policy" lean against the wind"? Can't bank regulation perform its task
alone? We model banks that choose both asset volatility and leverage, and identify how …

In this paper, we assess the effectiveness of the macroprudential capital buffers' release on
loans granted to households, implemented in the context of the Covid-19 pandemic. Using …

According to “Schwartz's conventional wisdom” and what has been called “divine
coincidence”, price stability should imply macroeconomic and financial stability. However, in …

The renewed momentum in the German housing market has led to concerns that Germany is
vulnerable to asset price shocks. In this paper, we apply recently developed recursive unit …

Standard banking theory suggests that there exists an optimal level of credit risk that yields
maximum bank profit. We identify the optimal level of risk-weighted assets that maximizes …

This study examines the determinants of a change in currency expectations for the Turkish
Lira (TL) versus the US dollar with different maturities (1 month, 3 months and 1 year). The …

Empirical evidence suggests financial intermediaries increase risky investments when
interest rates are low. We develop a model consistent with this observation and ask whether …

The notion of a tradeoff between output and financial stabilization is based on monetary-
macroprudential models with unique equilibria. Using a game theory setup, this paper …