Banking Panics and Protracted Recessions

Banking Without Deposit Insurance or Bank Panics: Lessons From a Model of the U.S. National Banking System

Are Bank Runs Contagious ?

Banks are a vital part of the economy because they provide an important channel through which many businesses get their financing. However, as we know from the history of the United States and other countries, banks can be subject to runs and panics. A panic that encompasses a large part of the banking system can seriously disrupt economic activity. During a run, a bank experiences much heavier...

Liquidity Provision vs. Deposit Insurance: Preventing Bank Panics without Moral Hazard?

In this paper I ask whether a central bank policy of providing liquidity to banks during panics can prevent bank runs without causing moral hazard. This kind of policy has been widely advocated, most notably by Bagehot (1873). To analyze such a policy, I build a model with three key features: 1) bank panics can occur in equilibrium, 2) there can be moral hazard, 3) the central bank can create m...

DRAFT Modes of Contagion in the Banking Panic of 1930 Erik Heit ield

Throughout the 1930s bank failures were highly clustered in time and space. This suggests that financial linkages between banks and/or systematic shocks that affected many banks simultaneously played important roles in depression era banking panics. This paper uses a Bayesian hazard rate model of bank suspensions with spatial and network effects to explore modes of contagion during the banking ...

تحلیل و آزمون عدم تقارن در رفتار سیاستگذاری پولی بانک مرکزی

According to Taylor (1993) rule, the monetary authority responds to deviations of output and of inflation from their targets through nominal interest rate fluctuations regarded as policy instrument. Another specification that has received considerable attention is that policymakers may have asymmetric preferences with regard to their objectives during recessions and expansions. Since according ...