Category Archives: Uncategorized

Ending too big to fail

One of the most interesting sessions in Chicago during the last ASSA Annual Meeting was about ending too big to fail. Neel Kashkari presented the Minneapolis Fed plan and Markus K. Brunnermeier and Randall Kroszner gave their view on the plan. … Continue reading

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The “crisis” of economics

Andy Haldane, chief economist at the Bank of England, has recently repeated the claims about the crisis of the economics profession. I have discussed this issue with many people since the financial crisis, and I was going to write something … Continue reading

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Leverage ratio and repo activity

In the previous post, I briefly mentioned some of the potential issues of the leverage ratio (LR). To be fair, these are only issues to the extent that the regulators did not foresee and did not include these consequences in … Continue reading

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The unintended consequences of the leverage ratio

The leverage ratio is one of the main innovations in the new banking regulatory framework, Basel III. It imposes a minimum amount of Tier 1 capital that depends on the size of the balance sheet, without any consideration for the … Continue reading

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BU post: Proprietary Trading: Evidence from the Crisis

Well, more than a month after saying that I was back… well, I am. And my post for the Bank Underground blog (the blog of the Bank of England staff) is finally out. But the really great thing is that, … Continue reading

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Guess who’s back!

Yes, it’s me—as far as I know, Eminem is not launching a new record. Although, to be honest, I haven’t check. Let me see. Nope, Wikipedia doesn’t say anything about it. So why was I gone? Because I was (still … Continue reading

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Global financial cycle and Germany

The importance of the global financial cycle is currently at the center of many policy and academic discussions. Especially dangerous for emerging economies, the highly synchronised credit booms and busts that advanced economies suffered recently suggests that it is also … Continue reading

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Data visualisation and macro-prudential regulation

During the pre-crisis period, or the micro-prudential one, mapping the whole financial sector was not very important: the focus was to ensure individual solvency. Nowadays two things have changed: much more data is being collected by supervisors, and much of … Continue reading

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Job market placement

After several months I write again. One of the most important reasons for taking so long has been the job market process. As some of you may know, during the last year of our PhD studies we participate in a … Continue reading

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Monetary Policy and Risk-Taking

In the last post we saw that Jiménez et al. (2012) showed that banks react to a monetary policy expansion by increasing credit supply, and that is particularly strong for ‘weaker’ banks. This is what it is known as the ‘lending … Continue reading

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