The recent financial crisis has triggered a major rethink of analytical approaches and policy
toward financial stability. The crisis has encouraged a sharper focus on systemic risk, the …

This book considers why institutional forms of modern capitalist economies differ
internationally, and proposes a typology of capitalism based on the theory of institutional …

Corporate governance is concerned with the resolution of collective action problems among
dispersed investors and the reconciliation of conflicts of interest between various corporate …

Over the last decade or so, addressing financial instability has risen to the top of the policy
agenda. This essay argues that in order to improve the safeguards against financial …

A complex financial system comprises both financial markets and financial intermediaries.
We distinguish financial intermediaries according to whether they issue complete contingent …

The paper analyses the causes of the current crisis of the global financial system, with
particular emphasis on the systemic elements that turned the crisis of subprime mortgage …

As bank regulatory reform tries to come to grips with the lessons of the financial crisis,
several experts have proposed that some form of contingent convertible debt (CoCo) …

This paper studies a Diamond-Dybvig model of providing insurance against unobservable
liquidity shocks in the presence of unobservable trades. We show that competitive equilibria …

We develop a dynamic model of banking to assess the effects of liquidity and leverage
requirements on banks' financing decisions and insolvency risk. In this model, banks face …

The last thirty years have seen an impressive number of banking and financial crises all over
the world. In an interesting study, Caprio and Klingebiel (1997) identify 112 systemic …