Demandable-debt finance by banks warrants explanation because it entails costs of bank
suspension, liquidation, and idle reserve holdings. An explanation is developed in which …

A large output gap accompanied by stable inflation close to its target calls for further monetary
accommodation, but the zero lower bound on interest rates has robbed the Federal Open …

… Charles W. Calomiris is an assistant professor of economics at Northwestern University and
a research associate of the Federal Reserve Bank of Chicago. Gary Gorton is an associate …

Why stable banking systems are so rare Why are banking systems unstable in so many
countries—but not in others? The United States has had twelve systemic banking crises since …

Studies of pre-Depression banking argue that banking panics resulted from depositor
confusion about the incidence of shocks, and that interbank cooperation avoided unwarranted …

The regulation of bank capital as a means of smoothing the credit cycle is a central element
of forthcoming macro‐prudential regimes internationally. For such regulation to be effective …

Bank safety nets, originally proposed as a means of stabilizing financial systems, have become
an important destabilizing influence. Government protection of bank debts encourages …

We assemble bank-level and other data for Fed member banks to model determinants of
bank failure. Fundamentals explain bank failure risk well. The first two Friedman-Schwartz …

… Our bank-level data are from the database created by Calomiris and Mason (2000). In
that paper, we describe our method for assembling bank-level balance sheet and income …

Little is known about the characteristics or behavior of commercial paper issuers at the firm
level, or about the reasons for the countercyclical issuance of commercial paper in the …