Mr.Giovanni Dell'Ariccia

Policies for Macrofinancial Stability

How to Deal with Credit Booms

This note explores the costs and benefits of different policy options to reduce the risks associated with credit booms, drawing upon several country e...

Benefits and Costs of Bank Capital

The appropriate level of bank capital and, more generally, a bank’s capacity to absorb losses, has been at the core of the post-crisis policy debate...

Monetary Policy and Bank Risk-Taking

This paper contributes to the current debate on what role financial stability considerations should play in monetary policy decision and how best to i...

Designing Central Bank Digital Currencies

We study the optimal design of a central bank digital currency (CBDC) in an environment where agents sort into cash, CBDC and bank deposits according ...

Managing the Sovereign-Bank Nexus

This paper reviews empirical and theoretical work on the links between banks and their governments (the bank-sovereign nexus). How significant is this...

A Banking Union for the Euro Area

The SDN elaborates the case for, and the design of, a banking union for the euro area. It discusses the benefits and costs of a banking union, present...

The Long Shadow of the Global Financial Crisis: Public Interventions in the Financial Sector

We track direct public interventions and public holdings in 1,114 financial institutions over the period 2007–17 in 37 countries based on publicly a...

Revisiting the Economic Case for Fiscal Union in the Euro Area

The paper makes an analytical contribution to the revived discussion about the euro area’s institutional setup. After significant progress during th...

Monetary Finance: Do Not Touch, Or Handle with Care?

This paper reviews the theoretical arguments in favor and against MF and presents an empirical assessment of the risks that it may pose for inflation....

Bank Leverage and Monetary Policy's Risk-Taking Channel

Evidence from the United States

We present evidence of a risk-taking channel of monetary policy for the U.S. banking system. We use confidential data on the internal ratings of U.S. ...

Rethinking Macro Policy II

Getting Granular

This is a Chinese translation of "Rethinking Macro Policy II" (SDN/13/03). This note explores how the economic thinking about macroeconomic management...

Supervisory Incentives in a Banking Union

We explore the behavior of supervisors when a centralized agency has full power over all decisions regarding banks, but relies on local supervisors to...

Benefits and Costs of Bank Capital

The appropriate level of bank capital and, more generally, a bank’s capacity to absorb losses, has been at the core of the post-crisis policy debate...

Monetary Policy in the New Normal

The proposed SDN would take stock of the current debate on the shape that monetary policy should take after the crisis. It revisits the pros and cons ...

Trade-offs in Bank Resolution

This SDN revisits the debate on bank resolution regimes, first by presenting a simple model of bank insolvency that transparently describes the trade-...

Bailouts and Systemic Insurance

We revisit the link between bailouts and bank risk taking. The expectation of government support to failing banks creates moral hazard—increases ban...

Financial Stress and Economic Activity: Evidence from a New Worldwide Index

This paper uses text analysis to construct a continuous financial stress index (FSI) for 110 countries over each quarter during the period 1967-2018. ...

Bank Competition and Household Privacy in a Digital Payment Monopoly

Lenders can exploit households' payment data to infer their creditworthiness. When households value privacy, they then face a tradeoff between protect...

Revisiting the Case for Debt Mutualization in the Euro Area: a Quantitative Exploration

Revisiting the Case for Debt Mutualization in the Euro Area: A Quantitative Exploration...

Housing Finance and Real-Estate Booms

A Cross-Country Perspective

The recent global crisis highlighted the risks stemming from real estate booms. This has generated a growing literature trying to better understand th...

Bank Lending in the Knowledge Economy

We study bank portfolio allocations during the transition of the real sector to a knowledge economy in which firms use less tangible capital and inves...

Discerning Good from Bad Credit Booms

The Role of Construction

Credit booms are a focal point for policymakers and scholars of financial crises. Yet our understanding of how the real sector behaves during booms, a...

Liberalizing Capital Movements

Some Analytical Issues

Features the full text of "Liberalizing Capital Movements: Some Analytical Issues," published by the International Monetary Fund. Discusses the growth...

Capital Account Liberalization

Theoretical and Practical Aspects

Capital account liberalization - orderly, properly sequence, and befitting the individual circumstances of countries- is an inevitable step for all co...

Monetary Policy in the New Normal

The proposed SDN would take stock of the current debate on the shape that monetary policy should take after the crisis. It revisits the pros and cons ...

Budget Support Versus Project Aid

Should donors who are interested in the effectiveness of developmental programs rely on conditional budget support or on project aid? To answer this q...

Flattening the Curve and the Flight of the Rich: Pandemic-Induced Shifts in US and European Housing Markets

The pattern of increasing suburban house prices relative to urban centers initiated during the pandemic continues to hold across the top 30 US metropo...

How to Deal with Real Estate Booms

Lessons From Country Experiences

The financial crisis showed, once again, that neglecting real estate booms can have disastrous consequences. In this paper, we spell out the circumsta...

Reaping the Benefits of Financial Globalization

Financial globalization has increased dramatically over the past three decades, particularly for advanced economies, while emerging market and develop...

Lessons and Policy Implications From the Global Financial Crisis

The ongoing global financial crisis is rooted in a combination of factors common to previous financial crises and some new factors. The crisis has bro...

Housing Finance and Real-estate Booms

A Cross-country Perspective

The recent global crisis highlighted the risks stemming from real estate booms. This has generated a growing literature trying to better understand th...

Monetary Policy, Leverage, and Bank Risk-Taking

We provide a theoretical foundation for the claim that prolonged periods of easy monetary conditions increase bank risk taking. The net effect of a mo...

Bank Lending and Interest Rate Changes in a Dynamic Matching Model

This paper presents theory and evidence on the dynamic relationship between aggregate bank lending and interest rate changes. Theoretically, it propos...

Early Birds, Late Risers, and Sleeping Beauties

Bank Credit Growth to the Private Sector in Central and Eastern Europe and in the Balkans

Following a period of privatization and restructuring, commercial banks in Central and Eastern Europe and, more recently, in the Balkans have rapidly ...