Reading list
What banks do, loan contracts
James Tobin, “The commercial banking Firm: A Simple model”, Scandinavian Journal of Economics, 84 1982 pp 495-530 Link
Jean Tirole, “Consumer Liquidity Demand” Chapter 12 in his Corporate Finance, Princeton University Press, 2006 K
Bengt Holmstrom and Jean Tirole: “Financial intermediation, loanable funds, and the real sector” Quarterly Journal of Economics 1997 112: 3, 663-691 Link
Instability of markets
Douglas W Diamond and Raghuram G Rajan: “Fear of fire sales, illiquidity seeking, and credit freezes” Quarterly Journal of Economics 2011 126 2, 557-591 Link
Jean Tirole: “Illiquidity and all its friends”, Journal of Economic Literature2 011. 49:2,287-325 Link
Xavier Vives: “Competition and stability in banking”, CEPR Policy insight no 50 august 2010
Franklin Allen and Douglas Gale: “Competition and financial fragility”, Journal of Money, Credit and Banking 2004 36: 3(2), 453-480 Link
Bank regulation
Xavier Freixas and Jean-Charles Rochet: “Regulation of Banks” Chapter 9 in their Microeconomics of Banking MIT Press 2008 (Sections 9.5.3, 9.6 and 9.7 can be skipped) K
Jin Cao and Gerhard Illing: Endogenous exposure to systemic liquidity risk, International Journal of Central Banking, 7(2), June 2011, p. 173 – 216 Link
Thomas F. Hellmann, Kevin C. Murdoch and Joseph E. Stiglitz:”Liberalization, Moral Hazard in Banking, and Prudential Regulation”: Are Capital Requirements Enough?”, American Economic Review 2000 90:1, 147-165
“The Fundamental Principles of Financial Regulation”; Geneva Reports on the World Economy, CEPR, June 2009
Henrik Borchgrevink, Sigmund Ellingsrud and Frank Hansen: “Macroprudential regulation - what, why and how?”, Norges Bank Staff Memo 13/2014 Link
Banks, monetary policy and output fluctuations
Asbj?rn R?dseth: “Banks, monetary policy and aggregate demand”, Lecture note University of Oslo 2015 (blir gjort tilgjengelig f?r semesterstart)
Javier Bianchi: “Overborrowing and systemic externalities in the business cycle” American Economic Review 2011, 101: 3400-3426 Link
Jean Tirole, “Credit rationing and Economic Activity” Chapter 13.1-13.3 in his Corporate Finance, Princeton University Press, 2006 K
Michael Woodford: “Financial intermediation and macroeconomic analysis” Journal of Economic Perspectives 2010, 24: 4, 21-44 Link
Bubbles and crises
Carmen M. Reinhart and Kenneth s. Rogoff: ?Banking Crises“ Chapter 10 in their This time is different, Princeton University Press 2009, p. 141-173 K
Alberto Martin and Jaume Ventura: “Theoretical notes on bubbles and the current crisis”, European Central Bank, Working Paper series, 2011: 1348 Link (Sections 1 and 2 only)
Markus K. Brunnermeier and Martin Oehmke, “Bubbles Financial Crises, and Systemic Risk”, NBER Working Paper 18398, 2012, Selected parts [Sections 1, 2, 3 (only subsections 3.1, 3.2 (except pages 18-19), 3.3, 3.4 (except page 23) and 3.5), and 4 (only subsections 4.2, and 4.3)] Link
K (Available in compendium Akademika)
Note: Articles overlap. Lectures will connect them and give guidance on where the emphasis should be. The lectures shall be considered part of the curriculum.