G2 - Financial Institutions and Services
-
Bank Leverage Regulation and Macroeconomic Dynamics
This paper assesses the merits of countercyclical bank balance sheet regulation for the stabilization of financial and economic cycles and examines its interaction with monetary policy. -
Do Low Interest Rates Sow the Seeds of Financial Crises?
A view advanced in the aftermath of the late-2000s financial crisis is that lower than optimal interest rates lead to excessive risk taking by financial intermediaries.