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dc.contributor.authorBOISSAY, Frederic
dc.contributor.authorCOOPER, Russell
dc.date.accessioned2021-02-22T15:49:52Z
dc.date.available2021-02-22T15:49:52Z
dc.date.issued2020
dc.identifier.citationAmerican economic journal : macroeconomics, 2020, Vol. 12, No. 1, pp. 41-75en
dc.identifier.issn1945-7707
dc.identifier.issn1945-7715
dc.identifier.urihttps://hdl.handle.net/1814/70184
dc.descriptionFirst published online: January 2020en
dc.description.abstractWholesale financial markets reallocate deposits. Because of incentive problems, these flows are limited by endogenous collateral constraints. The composition of collateral matters. The use of inside collateral creates a "collateral pyramid" : cash flows from one loan are pledged to secure another. Outside collateral, such as treasuries, stabilizes the pyramid. Through collateral pyramids the financial sector sustains a large volume of reallocation across banks, but at the cost of systemic panics. During panics, the safe asset creation process stalls, the pyramid collapses, collateral becomes scarce. Markets are more fragile when loans are secured by inside collateral.en
dc.language.isoen
dc.publisherAmerican Economic Associationen
dc.relation.ispartofAmerican economic journal – macroeconomicsen
dc.titleThe collateral composition channelen
dc.typeArticle
dc.identifier.doi10.1257/mac.20170097
dc.identifier.volume12
dc.identifier.startpage41
dc.identifier.endpage75
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dc.identifier.issue1


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