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Let a Small Bank Fail: Implicit Non-guarantee and Financial Contagion
Liyuan Liu, Xianshuang Wang, Zhen Zhou, Nov 27, 2024The research findings indicate that after the failure of a small bank, regulatory authorities did not fully bail out all creditors as had been the norm, and this policy shift affected the funding costs and market confidence of banks with lower systemic importance (SU).
Why Are So Many Young Women Moving to China’s Big Cities?
Yumi Koh, Jing Li, Yifan Wu, Junjian Yi, Hanzhe Zhang, Dec 03, 2025It’s not just about jobs. It’s also about love, status, and the marriage market.
Interest rates and exchange rates when the money supply goes up
Saleem Bahaj, Ricardo Reis, May 21, 2025The power of monetary policy to affect interest rates and exchange rates depends on the downward slope of the demand function. This column uses the Chinese experiment with parallel currencies to study the impact of sudden increases in money supply. The authors find causal evidence that increases in money supply lead to currency depreciations, and use this to quantify the interest elasticity of reserve demand. The results can be used to understand how the People’s Bank of China maintained the peg between the mainland and parallel currencies.
BigTech Credit and Monetary Policy Transmission
Yiping Huang, Xiang Li, Han Qiu, Changhua Yu, Dec 07, 2022By comparing business loans made by a BigTech bank with those made by traditional banks, this study finds that BigTech loans tend to be smaller, and the BigTech lender is more likely to grant credit to new borrowers than conventional banks in response to expansionary monetary policy.
Government-Directed Urban Growth, Firm Entry, and Industrial Land Prices in Chinese Cities
Jan K. Brueckner, Wenhua Liu, Wei Xiao, Junfu Zhang, May 17, 2023We examine the effect of large-scale administrative reorganization in China, where counties are annexed into cities to accommodate urban growth.
