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Rethinking Macroeconomic Policy
The great moderation lulled macro-economists and policymakers alike in the belief that we knew how to conduct macroeconomic policy. The crisis clearly forces to question that assessment. This paperExpand
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How to Deal with Real Estate Booms: Lessons from Country Experiences
The financial crisis showed, once again, that neglecting real estate booms can have disastrous consequences. In this paper, we spell out the circumstances under which a more active policy agenda onExpand
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Lending Booms and Lending Standards
This paper examines how the informational structure of loan markets interacts with banks' strategic behavior in determining lending standards, lending volumes, and the aggregate allocation of credit.Expand
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Information and Bank Credit Allocation
Private information obtained by lenders leads to borrower capture to the extent that such information cannot be communicated credibly to outsiders. We analyze how this capture affects the loanExpand
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Cross-Country Experiences and Policy Implications from the Global Financial Crisis
"The financial crisis of 2007--2008 is rooted in a number of factors, some common to previous financial crises, others new. Analysis of post-crisis macroeconomic and financial sector performance forExpand
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Credit Booms and Lending Standards : Evidence From the Subprime Mortgage Market
This paper links the current sub-prime mortgage crisis to a decline in lending standards associated with the rapid expansion of this market. We show that lending standards declined more in areas thatExpand
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Policies for Macrofinancial Stability: How to Deal with Credit Booms
This note explores the costs and benefits of different policy options to reduce the risks associated with credit booms, drawing upon several country experiences and the findings from econometricExpand
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Competition Among Regulators and Credit Market Integration
We analyze the incentives for independent domestic bank regulators to form a regulatory union when their jurisdictions are financially integrated. Because of externalities in bank regulation,Expand
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Bank Leverage and Monetary Policy's Risk-Taking Channel: Evidence from the United States
We present evidence of a risk-taking channel of monetary policy for the U.S. banking system. We use confidential data on banks' internal ratings on loans to businesses over the period 1997 to 2011Expand
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Adverse selection as a barrier to entry in the banking industry
Banks offering credit to borrowers are faced with uncertainty about their creditworthiness. If banks obtain information about borrowers after lending to them, they are able to reject riskierExpand
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