Now showing items 1-3 of 3
Capital Regulation, Heterogeneous Monitoring Costs, and Aggregate Loan Quality
This paper develops a banking-sector framework with heterogeneous loan monitoring costs. Banks are exposed to the moral hazard behavior of borrowers and endogenously choose whether to monitor their loans to eliminate this ...
Openness, the Sacrifice Ratio, and Inflation: Is there a Puzzle?
The standard time-inconsistency-based explanation for the negative correlation between openness and inflation requires an inverse relationship between the sacrifice ratio and openness, but Daniels et al. (forthcoming) ...
Openness, Central Wage Bargaining, and Inflation
This paper develops a model of an open economy containing both sectors in which wages are market-determined and sectors with wage-setting arrangements. A portion of the latter group of sectors coordinate their wages, ...