We build a balance sheet-based model to capture run risk, i.e., a reduced potential to raise capital from liquidity … critical in order for banking system regulators to adequately assess run risk and resilience. By bringing a time series of SVB … SVB prone to run risk, as they were increasingly relying on held-to- maturity, aka hidden-to-maturity, accounting …

The ability of institutions to effectively manage and aggregate risk-related data is an essential precondition for … sound decision-making and strong risk governance. This applies to any data used to steer and manage institutions, both … strategically and operationally, as well as data used for risk, financial and supervisory reporting. …

Trust in the central bank is an essential ingredient for a successful conduct of monetary policy. However, for many … central banks trust has recently declined, for instance in the wake of the post-pandemic inflation surge, due to large errors … persistent erosion of trust makes it clear that trust needs to be earned continuously. This paper reviews why trust is important …

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. …