How do real interest rates affect financial fragility? We study this issue in a model in which bank borrowing is … borrowing, both of which influence bank fragility in opposite directions. Thus, the marginal impact of changes to the interest … rate on bank fragility depends on the level of the interest rate. Finally, we derive testable implications that may guide …

collateral create fragility. A dealer stands between a borrower and a financier. The dealer borrows from the financier to fund … fragility in the chain. The arrival of news about the value of the revenue of the intermediation activity further increases … fragility. This fragility channel generates a premium for safe or opaque collateral. The environment considered in our model …

collateral create fragility. A dealer stands between a borrower and a financier. The dealer borrows from the financier to fund … fragility in the chain. The arrival of news about the value of the revenue of the intermediation activity further increases … fragility. This fragility channel generates a premium for safe or opaque collateral. The environment considered in our model …

How do real interest rates affect financial fragility? We study this issue in a model in which bank borrowing is … borrowing, both of which influence bank fragility in opposite directions. Thus, the marginal impact of changes to the interest … rate on bank fragility depends on the level of the interest rate. Finally, we derive testable implications that may guide …