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... monetarios. El segundo de los capítulos de-dicados a los mercados financieros aborda el estudio de los mercados de bonos públicos y corporativos, ca-racterizando su estructura, tamaño y desarrollo en un contexto global. ...
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Research Interests: Economic Theory, Corporate Finance, Applied Economics, Monetary Policy, Financial Studies, and 13 moreAsymmetric Information, BanK Lending, Financial Sector, Banking Sector, Interest Rate, Bank Loans, Corporate Bonds, Capital Adequacy, Credit Crunch, Multiple equilibria, Dynamic stochastic general equilibrium model, monetary policy transmission, and Finance and Investment Banking
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ABSTRACT We model a systemically important financial institution that is too big (or too interconnected) to fail. Without credible regulation and strong supervision, the shareholders of this institution might deliberately let its managers... more
ABSTRACT We model a systemically important financial institution that is too big (or too interconnected) to fail. Without credible regulation and strong supervision, the shareholders of this institution might deliberately let its managers take excessive risk. We propose a solution to this problem, showing how insurance against systemic shocks can be provided without generating moral hazard. The solution involves levying a systemic tax needed to cover the costs of future crises and more importantly establishing a systemic risk authority endowed with special resolution powers, including the control of bankers' compensation packages during crisis periods.