We use a new data set on macroprudential foreign exchange (FX) regulations to evaluate
their effectiveness and unintended consequences. Our results support the predictions of a …

We propose an amplification mechanism of financial crises based on the information choices
of investors. Information acquisition makes investors more likely to act against their prior. …

We examine the effect of ex-post information contagion on the ex-ante level of systemic risk
defined as the probability of joint bank default. Because of counterparty risk or common …

I study rollover risk in wholesale funding markets when intermediaries hold liquidity ex ante
and fire sales may occur ex post. Multiple equilibria exist in a global rollover game: …

We study a model of financial intermediation, payment choice, and privacy in the digital
economy. Cash preserves anonymity but cannot be used for more efficient online transactions. …

We model asset encumbrance by banks subject to rollover risk and study the consequences
for fragility, funding costs, and prudential regulation. A bank’s privately optimal …

We offer a theory of financial contagion based on the information choice of investors after
observing a financial crisis elsewhere. We study global coordination games of regime change …

We offer a model of financial intermediaries as safe-asset providers in an international
context. Investors from countries exposed to expropriation risk seek to invest in safe-haven …

This paper provides a structured overview of the burgeoning literature on the economics of
CBDC. We document the economic forces that shape the rise of digital money and review …

What is the effect of Central Bank Digital Currency (CBDC) on financial stability? We answer
this question by studying a model of financial intermediation with an endogenously …