Tag Archives: Financial Regulation

Impact of “Substantially Heightened” Capital Requirements on Large Financial Institutions

From Anil Kashyap, Jeremy Stein, and Sam Hanson: ABSTRACT: We examine the impact of “substantially heightened” capital requirements on large financial institutions, and on their customers. Our analysis yields three main conclusions. First, the frictions associated with raising new external equity … Continue reading

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On Keeping Your Powder Dry: Fiscal Foundations of Financial and Price Stability

From Maury Obstfeld: Banking systems have rapidly grown to a point where for many countries bank assets amount to multiples of GDP. As a consequence, government’s capacity to provide stability-enhancing fiscal guarantees against systemic crises can no longer be taken for … Continue reading

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Reforming Money Market Mutual Funds

Here’s a new proposal from Sam Hanson, David Scharfstein, and Adi Sunderam. We analyze the leading reform proposals to address the structural vulnerabilities of money market mutual funds (MMFs). We take the main goal of MMF reform to be safeguarding financial stability. … Continue reading

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Links for Today: Fiscal Cliff, Effectiveness of Savings Incentives, & Banking

Absolutely everything you need to know about the fiscal cliff from Wonkblog Study Questions Tax Breaks’ Effect on Retirement Savings by Annie Lowrie Banking Must not be Left in the Shadows by Gary Gorton via Mark Thoma  

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