Financial Cycles with Heterogeneous Intermediaries

We are especially grateful to our discussants Nobuhiro Kiyotaki, Arvind Krishnamurthy, Tommaso Monacelli and Thomas Philippon. We thank Roberto Chang, Mark Gertler, Hans Gersbach, Pierre-Olivier Gourinchas, Ralph Koijen, Anton Korinek, Matteo Maggiori, Frederic Malherbe, Alberto Martin, David Martinez-Miera, Xavier Ragot, Rafael Repullo and Hyun Song Shin for very valuable comments. We also thank seminar participants at the NBER EF&G Summer Institute, Stanford SITE conference, University of Chicago, MIT Sloan, Harvard University, Princeton University, Chicago Booth NYU, the EIEF Rome conference, CREI, Institute of International Economics in Stockholm, New York Federal Reserve Bank, ASSA meetings, Bank of England, Macroprudential Policy Conference at the Sverige Riksbank, Banque de France, Bank of Canada, Swiss National Bank, London School of Economics, Paris School of Economics and London Business School. We thank Arvind Krishnamurthy for sharing his data on long term investment and leverage of the US banking sector and Rustam Jamilov for excellent research assistance. Rey thanks the ERC for financial support (ERC Advanced Grant 695722).The views expressed in this paper are those of the authors and do not reflect those of the Bank of France, the Haut Conseil de Stabilité Financière, or the National Bureau of Economic Research.

• March 16, 2017
• January 28, 2019