Discussion Papers

This paper examines the role of platform-issued money in shaping digital marketplace competition against a legacy fiat market. We show that platform...

This paper develops an overlapping generations model to analyse the inflationary consequences of introducing cryptocurrency alongside fiat money in an...

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...

This paper provides a novel efficiency rationale for progressive corporate taxation based on commitment problems in entrepreneurial finance. Poor...

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...

We analyse how public health insurance affects private insurance markets in mixed public-private systems. Extending the standard selection framework...

Financial regulations rely on regulator-controlled models to generate probabilistic forecasts which determine firm constraints. I refer to these...

Central clearing counterparties (CCPs) manage counterparty risk by requiring clearing members to post margins. This paper explores the role of margins...

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...

To evaluate a bank’s resilience to financial stress, authorities often rely on private information from a peer institution, or counterparty. This...

The rapid adoption of artificial intelligence (AI) poses new and poorly understood threats to financial stability. We use a game-theoretic model to...

We analyze the stability of financial investment networks, where financial institutions hold overlapping portfolios of assets. We consider the effect...

India’s Unified Payment Interface (UPI) is an example of how an innovative payments and settlement system can initiate an economy wide transformation...

Debt recycling is an aggressive equity extraction strategy that potentially permits faster repayment of a mortgage. While equity progressively builds...

We examine a novel mechanism whereby the US dollar’s global dominance can have a large, unexpected impact on foreign Treasury yields in crisis periods...

This paper is concerned with upstreamness and downstreamness of industries and countries in global value chains. Upstreamness and downstreamness...