Josef Schroth - Latest - Bank of Canada
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Bank of Canada RSS Feedsen2024-03-28T14:00:42+00:00Financial Crisis Resolution
https://www.bankofcanada.ca/2012/12/working-paper-2012-42/
This paper studies a dynamic version of the Holmstrom-Tirole model of intermediated finance. I show that competitive equilibria are not constrained efficient when the economy experiences a financial crisis. A pecuniary externality entails that banks’ desire to accumulate capital over time aggravates the scarcity of informed capital during the financial crisis.2012-12-21T07:52:41+00:00enFinancial Crisis Resolution2012-12-21Financial marketsFinancial system regulation and policiesWorking Paper 2012-42https://www.bankofcanada.ca/wp-content/uploads/2012/12/wp2012-42.pdfFinancial Crisis ResolutionJosef SchrothDecember 2012DD5D53EE6E60GG0G01G1G10G18