Macro-Modelling, Default and Money
Mainstream macro-models have assumed away financial frictions, in particular default. The minimum addition in order to introduce financial...
The United States dominates global investment banking: does it matter for Europe?
In the aftermath of the global financial crisis, the market share of US investment banks is increasing, while that of their European counterparts is...
Papers by Otmar Issing and Charles Goodhart on the occasion of a Conference in honour of Prof Ben Friedman, held in Frankfurt on June 24, 2015
Two papers read on the occasion of a Conference in honour of Prof Ben Friedman, held in Frankfurt on June 24, 2015. Their titles are: "Some remarks on...
The Interest rate conditioning assumption
A central bank’s forecast must contain some assumption about the likely future path for its own policy-determined short-term interest rate. Most of...
Maturity Mismatch Stretching: Banking Has Taken a Wrong Turn
This note reviews the evolution of maturity transformation in banking and discuss- es the financial stability implications of its current level...
Competition and Credit Control
The Bank of England’s ‘consultative document’ on Competition and Credit Control was published on May 14th, 1971. It was a landmark occasion...
Macro-Modelling, Default and Money
Mainstream macro-models have assumed away financial frictions, in particular default. The minimum addition in order to introduce financial...
The Optimal Finance Structure
Banking developed rather differently in Anglo-Saxon countries than on the European Continent and in Japan. In Anglo-Saxon countries, notably the UK...
The Potential Instruments of Monetary Policy
In most standard (Dynamic Stochastic General Equilibrium, DSGE) macro-models, there is a single riskless rate, set by the Central Bank in accord with...
Foresight: The Future of Computer Trading in Financial Markets
SRC researchers were involved in a study that explores how computer generated trading in financial markets will evolve over the next 10 years. The...
Adjustment Mechanisms in a Currency Area
Both the euro-area and the United States suffered an initially quite similar housing and financial shock in 2007/8, with several states in both...
Financial Regulation in General Equilibrium
This paper explores how different types of financial regulation could combat many of the phenomena that were observed in the financial crisis of 2007...
Minsky's Financial Instability Hypothesis and the Leverage Cycle
Busts after periods of prolonged prosperity have been found to be catastrophic. Financial institutions increase their leverage and shift their...
The changing role of central banks
Although Central Banks have pursued the same objectives throughout their existence, primarily price and financial stability, the interpretation of...
