Averting financial crisis

Jeffrey Chwieroth and Jon Danielsson discuss the political challenges of the macroprudential agenda in the ESRC's annual flagship magazine Britain in...

Destabilizing carry trades

We offer a model of currency carry trades in which carry traders earn positive excess returns if they successfully coordinate on supplying excessive...

The Economics of Collateral

In this paper we study how the use of collateral is evolving under the influence of regulatory reform and changing market structure. We start with a...

Model Risk of Risk Models

This paper evaluates the model risk of models used for forecasting systemic and market risk. Model risk, which is the potential for different models...