Speaker(s) | Type | Length | Chair | ||
---|---|---|---|---|---|
Hélène Rey | EJM Session |
|
14:30 |
75
mins |
Per Krusell
|
In this lecture, Hélène Rey shows that there is substantial heterogeneity in risk taking across different financial intermediaries and that this heterogeneity matters for systemic risk. She develops a simple and tractable macro finance model with heterogeneous intermediaries, which can generate “good booms” and “bad booms”, substantial time variations in risk premia and a clear link between cost of financing and deregulation and financial instability.