This paper reviews recent research on the relationship between central bank policies and
inequality. A new paradigm which integrates sticky‐prices, incomplete markets, and …

We review the extensive literature on systemic risk and connect it to the current regulatory
debate. While we take stock of the achievements of this rapidly growing field, we identify a …

The severity and longevity of the recession caused by the 2007 financial crisis has
highlighted the lack of a reliable macro-based financial regulation framework. As a …

In the intermediation of loanable funds model of banking, banks accept deposits of pre-
existing real resources from savers and then lend them to borrowers. In the real world, banks …

We develop a model of banking industry dynamics to study the quantitative impact of
regulatory policies on bank risk‐taking and market structure. Since our model is matched to …

Capital requirements are the cornerstone of modern bank regulation, yet little is known
about their welfare cost. This paper measures this cost and finds that it is surprisingly large. I …

This paper develops a dynamic general equilibrium model to quantify the effects of bank
capital requirements. Households' preferences for liquid assets imply a liquidity premium on …

We analyze how regulatory constraints on household leverage—in the form of loan‐to‐
income and loan‐to‐value limits—affect residential mortgage credit and house prices as …

How much capital should financial intermediaries hold? We propose a general equilibrium
model with a financial sector that makes risky long‐term loans to firms, funded by deposits …

In the loanable funds model, banks are modelled as resource-trading intermediaries that
receive deposits of physical resources from savers before lending them to borrowers. In the …