Bitcoin isn’t much of a macro hedge
Bitcoin is often sold as protection against adverse macroeconomic outcomes. This column argues that this depiction as a macro hedge does not stand up...
Restarting Ukraine’s agricultural exports
Russia has imposed a naval blockade on Ukraine, suffocating the country’s agricultural exports. The last time that Ukraine experienced an export...
Covid-19 and trust among the young
Mishandled public health and other disasters erode young people’s trust in politicians for years
Ukraine’s recovery challenge
The economic damage in Ukraine in the wake of Russia’s invasion is on a scale not seen in Europe since WWII. This column compares Ukraine’s economic...
CBDCs: Potential Impact on Bank Profitability, Asset and Risk Management and Financial Stability
In this paper we discuss whether or not the introduction of CBDCs may impact the profitability of banks and their ability to accumulate capital...
Central bank digital currencies, reserve currencies and geopolitics
When it comes to central bank digital currencies (CBDCs), the focus of market participants and regulators – especially in the banking industry – is...
Some Evidence of Regulatory Convergence
We find some evidence of regulatory convergence in four distinct areas of business activity over the 2005-2019 period. This convergence is most...
Delegation Chains
We ask why we observe multiple layers of decision-making in fund management with investors, sponsors, fund managers, and consultants, even if...
Bond Funds and Credit Risk
We show that supply-side effects arising from the bond holdings of open-end mutual funds affect corporate credit risk. In our model, funds exposed to...
Dynamic Asset-Backed Security Design
Borrowers obtain liquidity by issuing securities backed by current period payoff and resale price of a long-lived collateral asset. They are privately...
Research highlight
The Wall Street stampede: Exit as governance with interacting blockholders
Journal of Financial Economics, 144(2), 433-455
SUERF Policy Note - Stylised facts on debt and financial crisis
This policy note summarizes the main empirical findings on the role of debt in financial crisis. Credit booms – on mortgage debt, debt to the non...
The loss of human capital in Ukraine
School disruptions due to war, pandemics, or natural disasters can have persistent negative effects on learning outcomes. This column estimates the...
Bankers' Pay and the Evolving Structure of US Banking
We study the evolution of pay in US bank holding companies since 1986 using a structural model of the banking firm. The model incorporates a strong...
Discounted Stochastic Games, the 3M Property and Stationary Markov Perfect Equilibria
We show that all discounted stochastic games DSGs satisfying the usual assumptions have Nash payoff selection correspondences having fixed points. Our...
