Financial crises have occurred for many centuries. They are often preceded by a credit
boom and a rise in real estate and other asset prices, as in the current crisis. They are also …

This paper argues that the extent of financial contagion exhibits a form of phase transition:
as long as the magnitude of negative shocks affecting financial institutions are sufficiently …

We study the effects of technological change on financial intermediation, distinguishing
between innovations in information (data collection and processing) and communication …

We analyze asset-backed commercial paper conduits, which experienced a shadow-
banking run and played a central role in the early phase of the financial crisis of 2007–2009 …

We present a model of shadow banking in which banks originate and trade loans, assemble
them into diversified portfolios, and finance these portfolios externally with riskless debt. In …

This paper investigates the relationship between short-term interest rates and bank risk.
Using a unique database that includes quarterly balance sheet information for listed banks …

This paper reviews the theoretical literature at the intersection of macroeconomics and
finance to draw lessons on the connection between vulnerabilities in the financial system …

We identify current challenges for creating stable, yet efficient financial systems using
lessons from recent and past crises. Reforms need to start from three tenets: adopting a …

The global imbalance explanation of the financial crisis of 2007-09 suggests that demand for
riskless assets from countries with current account surpluses created fragility in countries …

Banking crises are rare events that break out in the midst of credit-intensive booms and
bring about deep and long-lasting recessions. This paper presents a textbook dynamic …