G01

Sergio Correia · Stephan Luck · Emil Verner

Correia, Luck, and Verner ask a foundational question in banking: why do banks fail? Specifically, they seek to adjudicate between two theoretical views — the solvency view (failures caused by …

Sergio Villalvazo

Layer 1 — Overview Research Question This paper studies the cross-sectional dimension of Fisher’s (1933) debt-deflation mechanism as it operates during Sudden Stop crises — episodes …

Mauricio Barbosa-Alves · Javier Bianchi · César Sosa-Padilla

The paper extends the Cole-Kehoe (2000) sovereign rollover crisis model to include international reserves and derives the joint optimal management of sovereign debt and reserves in a small open …

Maximilian Grimm · Òscar Jordà · Moritz Schularick · Alan M. Taylor

This paper provides the first long-run causal evidence that a persistently loose stance of monetary policy — defined as extended periods of low interest rates relative to the neutral rate — …

Matthew Baron · Luc Laeven · Julien Pénasse · Yevhenii Usenko

Layer 1 — Overview Research Question This paper investigates two interrelated questions about historical banking crises: (1) whether bank losses during banking crises are primarily temporary or …