Franklin Allen

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In recent ®nancial crises a bubble, in which asset prices rise, is followed by a collapse and widespread default. Bubbles are caused by agency relationships in the banking sector. Investors use money(More)
How should new securities be designed? Traditional theories have little to say on this: the literature on capital structure and general equilibrium theories with incomplete markets takes the(More)
Modern …nancial systems exhibit a high degree of interdependence. There are different possible sources of connections between …nancial institutions, stemming from both the asset and the liability(More)