The Plight of Modern Markets: How Universal Banking Undermines Capital Markets

Banking and Markets

This paper integrates a number of recent themes in the literature on banking and asset markets–optimal risk sharing, limited market participation, asset-price volatility, market liquidity, and Þnancial crises–in a generalequilibrium theory of the Þnancial system. A complex Þnancial system comprises both Þnancial markets Þnancial institutions. Financial institutions can take the form of intermed...

How the U.S. Capital Markets Volatility Interacts With Economic Growth

Empirical finance suggests that US capital markets’ volatility has a negative relationship with economic growth. As the main focus is on the equity market volatility dynamics and less on other equally important asset types, in this paper we examine the dynamics between US money markets, government debt, corporate debt and equities volatilities, and a real GDP growth proxy, between 1963 and 2009...

Essays in Capital Markets

This thesis consists of three essays in capital markets. The first essay presents a dynamic asset pricing model with heterogeneously informed agents. Unlike previous research, the general case where differential information leads to the problem of "forecasting the forecasts of others" and to non-trivial dynamics of higher order expectations is studied. In particular, it is proved that the model...

Financial Markets , Money , and Banking

■ Abstract The study of financial markets, money, and banking is largely considered the purview of economics. Yet sociologists have contributed greatly to understanding financial relations since the early history of the discipline. This review begins with an overview of classical sociological approaches to financial markets, money, and banking and then describes how research in these areas expl...

How Capital Markets Enhance Economic Performance and Facilitate Job Creation