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Naqvi, Hassan.jpg Area Finance
Faculty 나크비, 하산
Position Assistant Professor
Title 금융권의 수익성을 위한 버블과의 공존
On reaching for yield and the coexistence of bubbles and negative bubbles.pdf
							하산 나크비 교수의 최근 논문이 금융 분야 최고 저널 중 하나인 'Journal of Financial Intermediation'에 게재 수락되었다. 본 논문의 주요 내용은 다음과 같다. 


We develop a model of financial intermediation wherein bank managers "reach for yield" - by over investing in risky assets and under investing in safer assets - provided they do not face much cost from liquidity shortfalls. The managers follow a pecking order in which their last preference is to invest in risky assets; their second preference is to hoard liquid assets; and their last preference is to invest in safer assets. This behavior is conducive to the formation of bubbles and negative bubbles in the market for risky and safer assets, respectively. Monetary loosening, by reducing the cost of liquidity shortfalls, induces further reach for yield and amplifies the bubbles.

Keywords: Bubbles, monetary policy, moral hazard, negative bubbles, reaching for yield, risk-taking channel
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