Discussion Papers

This paper addresses the issue of the optimal behaviour of the Lender of Last Resort (LOLR) in its microeconomic role regarding individual financial...

We show that market discipline can be effective in resolving the moral hazard problem which arises when depositors do not know whether bankers are...

We present a continuous-time asset pricing model of the levered firm where shareholders select not only the timing but also the form of control...

This paper derives the moments for a range of Markov switching models. We characterize in detail the patterns of volatility, skewness and kurtosis...

This paper applies an extended and generalized version of the recursive modelling strategy developed in Pesaran and Timmermann (1995) to the UK stock...

Using a standard monetary policy model, we study how foreign exchange intervention may be used to condition the perception among economic agents of...

Most of the existing empirical literature on FX market microstructure uses indicative quote data derived from Reuters EFX screens. This paper examines...

We analyze a general equlibrium model of strategic arbitraging and intermediation. Arbitrageurs take advantage of mispricings, market frictions and...

A risk-averse consumer purchases an insurance policy; if she suffers a loss, she may receive services from a provider to recover some of the loss...

By providing an analysis of sequential going-public decisions the paper outlines conditions under which "hot issue markets" arise, i.e. under which...

The paper uses a dataset of German dual-class shares during 1988-1997 to study the relationship between corporate governance rules and the price...

This paper re-examines the role of conservatism in the delegation of monetary policy to an independent central bank. We develop a tractable framework...

A paper by Charles Goodhart of LSE FMG and Haizhou Huang of the International Monetary Fund.

This paper presents empirical evidence on the existence of structural breaks in the fundamentals process underlying US stock prices. We develop an...

The UK experienced a major residential real estate boom-bust cycle from the mid-Eighties to the mid-Nineties, accompanies by unprecedented shifts in...