Monetary policy can promote financial stability and improve household welfare. We consider a macro model with a financial sector in which banks do not actively issue equity, output and growth depend on the aggregate level of bank equity, and …
When financial intermediaries’ key characteristic is provision of liquidity through their liabilities, with financial frictions the financial sector in the aggregate is likely to over-accumulate equity, thus decreasing liquidity provision and …
Lack of coordination for prudential regulation hurts developing economies but benefits ad- vanced economies. We consider a two-country macro model in which countries have limited ability to issue state-contingent contracts in international markets, …
We revisit a family of infinite-energy solutions of the 3D incompressible [Euler equations](https://www.sciencedirect.com/topics/mathematics/euler-equation) proposed by Gibbon et al. [9] and shown to blowup in finite time by Constantin [6]. By adding …