Publications

The availability of credit varies over the business cycle through shifts in the leverage of financial intermediaries. Empirically, we find that...

The book uses economic theory, finance, mathematical modelling, risk theory, and policy to posit a comprehensive, coherent and current economic...

Review of Financial Studies, 26 (8). pp. 1891-1912.

Review of Financial Studies, 26 (8). pp. 1914-1961. 

Journal of Financial Economics, 109 (2). pp. 566-582. 

Managers should focus on companies, not prices, says Paul Woolley.

In a dramatic change from the euphoria in the early 2000s based on a widespread belief in the “success” of the partial independence of the Bank of...

Mainstream macro-models have assumed away financial frictions, in particular default. The minimum addition in order to introduce financial...

The lesson that regulation and supervision of banks and financial markets must improve has now at last become conventional wisdom among politicians in...

Interest in TBTF resolutions of insolvent large complex firms has intensified in recent years, particularly in banking. TBTF resolutions protect some...

We study the feedback from hedging mortgage portfolios on the level and volatility of interest rates. We incorporate the supply shocks resulting from...

Banks cannot be made failsafe. But they can be made safe to fail, so that the failure of a bank need not disrupt the economy at large nor pose cost to...

Icelandic voters recently ejected its post-Crisis government – a government that successfully avoided economic collapse when the odds were stacked...

Review of Financial Studies, 26 (5). pp. 1087-1145. 

We propose a novel measure of arbitrage activity to examine whether arbitrageurs can have a destabilizing effect in the stock market. We apply our...

One aspect of the Cypriot crisis resolution is of particular concern. As authorities fear that anyone with money in Cyprus will want to take it out as...