Papers & Opinions

    Banking | Electoral politics | Empirics

    Banks, Political Capital, and Growth

    Paper

    Posted on 30 June 2021

    By Thomas Lambert

    In this paper, we study the consequences of banks’ political connectedness for economic activity. We focus on the subset of banks that donate to candidates in US congressional elections, and...
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    Corporate finance | Empirics | Political institutions

    Finance and Ideology: The Firm-Level Channels

    Paper

    Posted on 22 June 2021

    By Haikun Zhu

    We investigate how politicians’ ideologies affect economic outcomes and financial development through firm-level channels. We explore a unique setting of ideological change in China from Mao’s ideology to Deng’s around...
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    Central banking | Political institutions | Theory

    The Euro as a Diverse Monetary Union

    Paper

    Posted on 21 May 2021

    By Oscar Soons

    We analyze the political economy causes and consequences of a monetary unification among countries with different institutional quality. Before a common currency countries with stronger institutions have more efficient public...
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    Banking | Electoral politics | Theory

    The Political Economy of Prudential Regulation

    Paper

    Posted on 21 May 2021

    By Magdalena Rola-Janicka

    This paper introduces a voting model into a setting with negative borrowing externalities to study voter preferences for prudential regulation. Voters internalize the general equilibrium impact of prudential policy on...
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