Staff Working Papers
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A Tractable Monetary Model Under General Preferences
Consider the monetary model of Lagos and Wright (JPE 2005) but with general preferences and general production. I show that preferences satisfying UXXUHH – (UXH)2 = 0 is a sufficient condition for the existence and uniqueness of monetary equilibrium with degenerate money distribution. -
To Link or Not To Link? Netting and Exposures Between Central Counterparties
This paper provides a framework to compare linked and unlinked CCP configurations in terms of total netting achieved by market participants and the total system default exposures that exist between participants and CCPs. -
Market Structure and Cost Pass-Through in Retail
We examine the extent to which vertical and horizontal market structure can together explain incomplete retail pass-through.