What is an acceptable level of return on equity (RoE) for a bank? This question is likely to play a pivotal role in the … 20%, as these have mostly proved to be unsustainable. Recent events have shown that the most common measure for a bank …

Trust in the central bank is an essential ingredient for a successful conduct of monetary policy. However, for many …

We explore how fiscal consolidations affect private sector confidence, a possible channel for the fiscal transmission …) show that consolidations, and in particular their unanticipated components affect confidence negatively. The effects are … accurate picture of how consolidations affect confidence, we construct a monthly dataset of consolidation announcements based …

prone to equilibrium multiplicity. A drop in confidence can drive the economy into a liquidity trap without any change in … from declining in the face of a confidence shock insulate the economy from such expectations-driven liquidity traps. …

asymmetries within the bank combined with fixed wages. Two kinds of inefficiencies arise in equilibrium: the credit officer either … bank accepts the information asymmetries, is called the centralized structure. Under decentralized structure the bank … finance more small firms, but incur higher costs than centralized ones. Small banks are interpreted as a bank with relatively …