Huberto M. Ennis

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This paper studies the full equilibrium dynamics of an economy with financial frictions. Due to highly non-linear amplification effects, the economy is prone to instability and occasionally enters volatile crisis episodes. Endogenous risk, driven by asset illiquidity, persists in crisis even for very low levels of exogenous risk. This phenomenon, which we(More)
We study the impact that the privatization process in Argentina had on income distribution and the welfare of the poor. We divide our study in three main areas: the consumption effect, the employment effect, and the fiscal effect. We use household survey data to try to identify those changes in the economic organization of Argentina that could be associated(More)
This paper uses a class of models of money and the payments system to inform an analysis of “mobile banking” in the context of the rapid expansion of M‐PESA, a new technology in Kenya that allows payments via mobile phones (even without any access to a bank account), and currently reaches close to 38 percent of Kenyan adults. The (More)
We study the Green and Lin [J. Econ. Theory 109 (2003) 1-23] model of financial intermediation under a more general specification of the distribution of types across agents. We derive the efficient allocation in closed form. We show that, in some cases, the intermediary cannot uniquely implement the efficient allocation using a direct revelation mechanism.(More)
R ecently there has been a renewed discussion in the literature about the determinants of bank runs. Two alternative theoretical explanations are usually provided. According to the first theory, bank runs are exclusively driven by changes in economic fundamentals, such as a deterioration in the return on investment. The second theory views bank runs as a(More)
This paper revisits the issue of the optimal exchange rate regime in a flexible price environment. The key innovation is that we analyze this question in the context of environments where only a fraction of agents participate in asset market transactions (i.e., asset markets are segmented). We show that flexible exchange rates are optimal under monetary(More)
O ver the last two decades, central banks around the world have adopted a common approach to monetary policy that involves targeting the value of a short-term interest rate. In the United States, for example, the Federal Open Market Committee (FOMC) announces a rate that it wishes to prevail in the federal funds market, where commercial banks lend balances(More)