skyline with banks at dusk

This programme examines how different types of agents interact in financial markets; how asset prices are formed and relate to economic fundamentals; how price movements impact firms’ investment and the macro-economy; and how regulatory policies affect market outcomes and economic welfare. Part of the research in this programme is conducted within the Paul Woolley Centre (PWC). Research at the PWC departs from the Arrow-Debreu view of frictionless markets and emphasizes the role of financial institutions and their managers’ incentives in influencing asset prices and the allocation of capital in the economy, and in causing occasional mispricing and misallocation. PWC research focuses primarily on the asset management sector. 

Paul Woolley Centre

Latest Publications

On the Fragility of DeFi Lending

We develop a dynamic model of DeFi lending that incorporates the following key features: 1) borrowing and lending are decentralized, anonymous...

DP 883