10.12.2024: Rustam Jamilov – Two centuries of systemic bank runs

Presenter: Rustam Jamilov Affiliation: University of Oxford, All Souls College. Paper: Two Centuries of Systemic Bank Runs. Date: December 10, 2024. Time: 13:00 GMT (15:00 Israel Time) Abstract: We study bank runs using a novel historical cross-country dataset that covers 184 countries over the past 200 years and combines a new narrative chronology with statistical … Read more

07.05.2024: Paul Fontanier – Sovereign bond purchases and rollover crises

Presenter: Paul Fontanier Affiliation: Yale University, School of Management. Paper: Sovereign Bond Purchases and Rollover Crises. Date: May 7, 2024. Time: 12:00 GMT (15:00 Israel Time) Abstract: This paper proposes a theory of large-scale government bond purchases by central banks in an environment with endogenous information acquisition. Information acquisition by private investors lowers risk premia … Read more

25.07.2023: ‪Moritz Schularick‬ – Loose monetary policy and financial instability

Presenter: ‪Moritz Schularick‬‬ Affiliation: Sciences Po and University of Bonn, Department of Economics Paper: Loose Monetary Policy and Financial Instability Date: July 25, 2023 Time: 12:00 GMT (15:00 Israel Time) Abstract: Do periods of persistently loose monetary policy increase financial fragility and the likelihood of a financial crisis? This is a central question for policymakers, … Read more

25.10.2022: Paul Fontanier – Optimal policy for behavioral financial crises

Presenter: Paul Fontanier Affiliation: Yale University, Yale School of Management Paper: Optimal Policy for Behavioral Financial Crises Date: October 25, 2022 Time: 12:00 GMT (15:00 Israel Time) Abstract: Should policymakers adapt their macroprudential and monetary policies when the financial sector is vulnerable to belief-driven boom-bust cycles? I develop a model in which financial intermediaries are … Read more

15.03.2022: Jordi Galí – Monetary policy and endogenous financial crises

Presenter: Jordi Galí Affiliation: Universitat Pompeu Fabra, Department of Economics, CREI and Barcelona GSE. Paper: Monetary Policy and Endogenous Financial Crises Date: March 15, 2022 Time: 13:00 GMT Abstract: We study whether a central bank should deviate from its objective of price stability to promote financial stability. We tackle this question within a textbook New … Read more

21.04.2021: Sasha Indarte – Financial crises and the transmission of monetary policy to consumer credit markets

How does the health of creditors affect the pass-through of monetary policy to households? In a financial crisis, asset losses among creditors can either dampen or amplify the effects of monetary policy on lending, depending on how these losses and policies interact with financial frictions. Frictions such as leverage constraints may hinder creditor responses, however easing may instead alleviate frictions that would otherwise constrain lending. Using data on the universe of US credit unions, I document that asset losses increase the sensitivity of consumer credit to monetary policy. Identification exploits plausibly exogenous variation in asset losses and high frequency identification of monetary policy shocks. I find that a one standard deviation asset loss increases the response of credit union lending to a 10 basis point fall in the two-year Treasury rate from a 0.86 to 1.15 percentage point increase. The estimates imply that constraints on monetary policy become more costly in a financial crisis characterized by creditor asset losses and that an additional benefit of monetary easing is that it weakens the causal, contractionary effect of asset losses.

Skip to content