This chapter surveys the literature on bubbles, financial crises, and systemic risk. The first
part of the chapter provides a brief historical account of bubbles and financial crisis. The …

This paper reviews the theoretical literature on bank capital regulation and analyzes some of
the approaches to redesigning the 1988 Basel Accord on capital standards. The paper starts …

This article develops a model that speaks to the goals and methods of financial stability
policies. There are three main points. First, from a normative perspective, the model defines …

" Magnificent."—The Economist From the Nobel Prize–winning economist, a groundbreaking
and comprehensive account of corporate finance Recent decades have seen great …

This paper addresses a basic, yet unresolved, question: Do claims on private assets provide
sufficient liquidity for an efficient functioning of the productive sector? Or does the state have …

This paper provides evidence that interbank markets are tiered rather than flat, in the sense
that most banks do not lend to each other directly but through money center banks acting as …

Empirical evidence suggests that banking panics are related to the business cycle and are
not simply the result of “sunspots.” Panics occur when depositors perceive that the returns …

We show in this article that bank failures can be contagious. Unlike earlier work where
contagion stems from depositor panics or contractual links between banks, we argue that …

This paper develops a broad concept of systemic risk, the basic economic concept for the
understanding of financial crises. It is claimed that any such concept must integrate systemic …

A complex financial system comprises both financial markets and financial intermediaries.
We distinguish financial intermediaries according to whether they issue complete contingent …