assess and price the risk of default. In order to analyse default risk in the macroeconomy, a simple general equilibrium … model with banks and financial intermediation is constructed in which default-risk can be priced. It is shown how the credit … spread can be attributed largely to the risk of default and how excess loan creation may emerge due different attitudes to …

The paper analyses and compares the role that the tightening in liquidity conditions and the collapse in risk appetite … shocks have had a more severe impact on advanced economies, it was mainly the decline in risk appetite that affected emerging … within types of economies, with Europe being more adversely affected by the fall in risk appetite than other advanced …

later period are consistent with the use of cryptocurrencies as financial assets (popularized by Bitcoin), and not … changes over time in exchange rate data among cryptocurrencies. Specifically, we look at two aspects: (1) competition among …-take-all effect is dominant early in the market. During this period, when Bitcoin becomes more valuable against the U.S. dollar, it …

capital stock is fixed, there may be multiple equilibria. If foreign banks regard lending as low-risk, then it is. But if they … regard lending as high-risk and charge a higher interest rate, then the costs of honouring guarantees rises, making the … lending high-risk and the risk premium self-justifying. A crisis occurs with a switch to this second equilibrium in which the …