Platform Money
This paper examines the role of platform-issued money in shaping digital marketplace competition against a legacy fiat market. We show that platform...
Cryptocurrency’s Inflation Tax and the Black Banking Solution: An OLG Approach
This paper develops an overlapping generations model to analyse the inflationary consequences of introducing cryptocurrency alongside fiat money in an...
Market-Based Liquidity Transformation
We develop a theory of liquidity transformation performed by market participants. An in-kind wrapper (e.g., a corporate bond ETF), issued by a fee...
Super-Pledgeability: How Progressive Taxation Solves Entrepreneurial Commitment Problems
This paper provides a novel efficiency rationale for progressive corporate taxation based on commitment problems in entrepreneurial finance. Poor...
Safe Assets as Balance Sheet Multipliers
We highlight the multiplier role of (public) safe assets by studying a model of a bank’s balance sheet. The bank optimally constructs a portfolio of...
Market Information and the Impact of Public Health Insurance on the Private Insurance Market
We analyse how public health insurance affects private insurance markets in mixed public-private systems. Extending the standard selection framework...
Regulator Model-Implied Beliefs
Financial regulations rely on regulator-controlled models to generate probabilistic forecasts which determine firm constraints. I refer to these...
Margins as Canaries in the Coal Mine
Central clearing counterparties (CCPs) manage counterparty risk by requiring clearing members to post margins. This paper explores the role of margins...
How Reform Happens
What determines whether and how regulations are reformed? We use a newly constructed data set of 3,590 successful and failed regulatory reforms in 189...
Stablecoins: Policy, sovereignty and backstops
No jurisdiction can ignore stablecoins. They can be banned outright only in the most effectively authoritarian countries, or accommodated and even...
The geopolitics of stablecoins
Stablecoins are private digital money pegged to a fiat currency, overwhelmingly the US dollar. Dollar stablecoins reinforce American monetary and...
Stablecoins are run-optimised instruments
Stablecoins are private digital money designed to trade at par with a fiat currency, usually the US dollar. This column argues that stablecoins are...
The paradox of perfect supervision
Each financial crisis brings more financial supervision, more models and larger buffers – but still fragility persists. The paradox of perfect...
How financial authorities best respond to AI challenges
Artificial intelligence is transforming finance faster than the authorities can adapt. This column argues that while AI enhances the financial system...
