Discussion Papers

The paper considers three methods for eliminating the zero lower bound on nominal interest rates and thus for restoring symmetry to domain over which...

This lecture is a tour d’horizon of the financial crisis aimed at extracting lessons for future financial regulation. It combines normative...

I study the cross sectional variation of stock returns and technological progress using a dynamic equilibrium model with production. In the model...

This paper studies asset markets in which ambiguity averse investors face Knightian uncertainty about expected payoffs. The same investors, however...

This paper is no longer available, the revised version of this paper can be found as Paul Woolley Centre Paper 4, FMG Discussion Paper 632

We study the relationship between liquid asset holding and the pattern of share ownership and control structures within the firm. We explore these...

Using a dynamic model of a step-by-step innovation race between financially constrained firms, I study how financial constraints affect innovation...

We document that the firm level hiring rate predicts stock returns in the cross-section of US publicly traded firms even after controlling for...

This paper shows that the systematic risk (or "beta") of individual stocks increases by an economically and statistically significant amount on days...

Contrary to the classic framework of passive strategies, if investors exploit return predictability through active strategies then there is a tension...

Motivated by the credit crisis 2007-08, this paper presents a theory of "capital market banks"; banks that use derivative programs to exploit...

The recent crisis underlined that proper estimation of distress-dependence amongst banks in a global system is essential for financial stability...

We propose a rational theory of momentum and reversal based on delegated portfolio management. Flows between investment funds are triggered by changes...

Banks can enter new countries either through greenfield entry or by acquiring local banks. I model the effect of a foreign bank's mode of entry on the...

In a market with informationally connected traders, the dynamics of volume, price informa- tiveness, price volatility, and liquidity are severely...

This paper provides powerful evidence that mutual fund managers can pick stocks that outperform the market. Many have argued that the inability of...