Monthly Archives

July 2018

Meeting #3: Global Games: Theory and Applications

Monday, August 13, 2018 (22 Mordad 1397)15:00 – 16:00Khatam University, Room 202

Global games can be applied to the study of bank runs, bubbles, currency crises, political riots, revolutions, and any other economic situation which displays strategic complementarity. In this meeting, we discuss both the theory and its applications.

Required Reading(s)Global Games and Equilibrium Selection


Unique Equilibrium in a Model of Self-Fulfilling Currency Attacks

Crises and Prices: Information Aggregation, Multiplicity, and Volatility

Self-Fulfilling Currency Crises: The Role of Interest Rates

Meeting #2: Government Guarantees and Financial Stability

Monday, July 23, 2018 (01 Mordad 1397)15:00 – 16:00Khatam University, Room 202

“Government guarantees to financial institutions are common all over the world. The recent financial crisis has led to renewed interest and debate about their role and their desirability. On the one hand, government guarantees are thought to have a positive role in preventing panic among investors, and hence help stabilize the financial system. On the other hand, they may distort banks incentives, thus leading to an increase in financial fragility.” This paper provides a framework to study the effects of government guarantees on banks’ and depositors’ behavior.

Required Reading(s)Government Guarantees and Financial Stability