This paper examines the optimal design of retention in securitisation, in order to maximize welfare of screening per unit of retention, assuming that screening is costly and that the bank intends to securitise its loans. In contrast to the focus of previous literature on tranche retention, we...

This paper critically discusses three proposals to overcome the zero interest bound, which have recently been proposed by prominent economists. We trace back the historical origins of these proposals, reaching back to the late 19th century, and comment on their theoretical and practical...