Reading list
K: Available in compendium at Akademika
No textbook is required. 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.
MICROECONOMICS OF BANKING
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
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
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
Jean Tirole: Illiquidity and all its friends, Journal of Economic Literature2 011. 49:2,287-325
Xavier Vives: Competition and stability in banking, CEPR Policy insight, 50, August 2010
Franklin Allen and Douglas Gale: Competition and financial Stability, Journal of Money, Credit and Banking, 2004 36: 3(2), 453-480 Link
MACROECONOMICS OF BANKING
Bianchi, J. (2011) Overborrowing and systemic externalities in the business cycle, American Economic Review, 101, 3400–3426.
Brunnermeier, M. K. and Oehmke, M. (2013) Bubbles, Financial Crises, And Systemic Risk, Handbook of the Economics of Finance, 2, 1221–1288.
Martin, A. and Ventura, J. (2011) Theoretical Notes on Bubbles and the Current Crisis, IMF Economic Review, 59, 6–40.
Rodseth, A. (2014) Banks, monetary policy and aggregate demand.
Bernhardsen, T., and Kloster, A. (2010). Liquidity management system: Floor or corridor? Norges Bank Staff Memo, 4.
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
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