We develop a model where:(i) banks take deposits and make investments;(ii) their liabilities
facilitate third-party transactions. Other models have (i) or (ii), not both, although we argue …

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 …

I develop a model where banking arises endogenously from economies of scale in
monitoring. Only a fraction of agents are designated bankers, to reduce monitoring costs, but …

Monetary economists have long recognized a tension between the benefits of fractional
reserve banking, such as the ability to undertake more profitable (long‐term) investment …

The authors study banking using the tools of mechanism design, without a priori
assumptions about what banks are, who they are, or what they do. Given preferences …

After the global financial crisis of 2008, many economists have tried to better understand
why the financial system appears to be so fragile and how the central bank can play a …

El presente documento es una extensión del estudio realizado por Diamond-Dybvig. A
diferencia del modelo original, esta extensión modifica los supuestos con los cuales se …

Essays in Macro and Monetary Economics By Kui Huang A dissertation submitted in partial
fulfillment of the requirements for the Page 1 Essays in Macro and Monetary Economics By Kui …

The goal of this paper is to provide a framework to analyze the effectiveness of bank
coalition formation in response to an external aggregate shock that may cause disruption to …

Of the massive amount of failures experienced in corporate history, not every failure or
banking distress has triggered a panic among market actors, which were just deemed as …