RIEB Seminar (Jointly supported by: Grant-in-Aid for Scientific Research (A): Deflation, Strong Yen, and Financial Crises / Monetary Economics Seminar of Kobe University / Kobe University Interfaculty Initiative in the Social Sciences)
| Date&Time |
Friday, June 21, 2013, 3:30pm- |
| Place |
RIEB Meeting Room (Annex, 2nd Floor) |
| Intended Audience |
Faculty, Graduate Students, and People with Equivalent Knowledge |
| Language |
Japanese |
| Note |
Copies of the paper will be available at Office of Promoting Research Collaboration.
If you would like to attend ourseminar and the aftersession, please email us at Office of Promoting Research Collaboration your name, affiliation and email address by June 17. The fee for the aftersession is 3,000 yen for adults and 2,000 yen for graduate students. |
3:30pm-5:30pm
| Speaker |
Nobuhiro KIYOTAKI |
| Affiliation |
Department of Economics, Princeton University |
| Topic |
Banking, Liquidity and Bank Runs in an Infinite Horizon Economy |
| Abstract |
We develop a variation of the macroeconomic model of banking in Gertler and Kiyotaki (2011) that allows for liquidity mismatch and
bank runs as in Diamond and Dybvig (1983). As in Gertler and Kiyotaki,
because bank net worth fluctuates with aggregate production,
the spread between the expected rates of return on bank assets and
deposits fluctuates countercyclically. However, because bank assets
are less liquid than deposits, bank runs are possible as in Diamond
and Dybvig. Whether a bank run equilibrium exists depends on bank
balance sheets and a liquidation price for bank assets in equilibrium.
While in normal times a bank run equilibrium may not exist, the
possibility can arise in a recession. We also analyze the effects of
anticipated bank runs. Overall, the goal is to present a framework
that synthesizes the macroeconomic and microeconomic approaches
to banking and banking instability.
|
5:30pm～