Search Results
Speech
Modern recipes for financial crises
Remarks at the University of Iowa, December 4, 2015.
Working Paper
The Domestic and International Effects of Interstate U.S. Banking
This paper studies the domestic and international effects of national bank market integration in a two-country, dynamic, stochastic, general equilibrium model with endogenous producer entry. Integration of banking across localities reduces the degree of local monopoly power of financial intermediaries. The economy that implements this form of deregulation experiences increased producer entry, real exchange rate appreciation, and a current account deficit. The foreign economy experiences a long-run increase in GDP and consumption. Less monopoly power in financial intermediation results in less ...
Briefing
How Do Banks Choose Where to Place Branches?
Prior to the 1980s, U.S. banks faced restrictions on where they could open branches, which essentially confined them to their home states. Subsequent deregulation over the next two decades eliminated these restrictions, drastically changing the landscape of the banking industry. Some banks grew rapidly, while many others exited the market due to either competitive forces or consolidation. The main effect of deregulation was to allow banks to open branches in new locations; as such, this episode provides a natural experiment to study the mechanisms behind the sorting patterns that emerge from ...
Working Paper
Near-Money Premiums, Monetary Policy, and the Integration of Money Markets : Lessons from Deregulation
The 1960s and 1970s witnessed rapid growth in the markets for new money market instruments, such as negotiable certificates of deposit (CDs) and Eurodollar deposits, as banks and investors sought ways around various regulations affecting funding markets. In this paper, we investigate the impacts of the deregulation and integration of the money markets. We find that the pricing and volume of negotiable CDs and Eurodollars issued were influenced by the availability of other short-term safe assets, especially Treasury bills. Banks appear to have issued these money market instruments as ...