Chinese P2P lending platforms have an astonishing default rate of 87.2% based on data
available in 2019, which indicates the seriousness of the problem this industry faces …

To date, cryptocurrency prices are volatile and many cryptocurrency developers have
adopted ad hoc approaches to stabilize their cryptocurrency price. When these currencies …

This article argues that a pressing goal for macroeconomics is to incorporate financial
considerations, but we need models with solid microfoundations. In particular, the use of …

Are financial intermediaries–in particular, banks–inherently unstable or fragile, and if so,
why? We address this theoretically by analyzing whether model economies with financial …

Abstract We extend the Diamond-Dybvig model of bank runs to include a specification of
how much to deposit. When the propensity to run is zero, we prove an equivalence result …

We study experimentally an instrument to prevent bank runs in healthy banks. In particular,
we extend the basic bank-run game, where depositors choose between withdrawing or …

How do the interest rates banks earn on their assets affect the susceptibility of the banking
system to a self-fulfilling run by depositors? I study this question in a version of the model of …

In the years since the financial crisis of 2008 and the associated bailouts of banks and other
financial institutions, policy makers in several jurisdictions have drafted rules requiring that …

This paper analyzes a regulator's optimal strategic delay of resolving banks when the
regulator's announcement of the intervention delay endogenously affects the depositors' run …

We study the interaction between the government's bailout policy and a bank's willingness to
impose losses on (or “bail in”) investors based on its private information. In the absence of …