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Papers by Brian Okelly
Journal of International Money and Finance, 2012
O Kelly Brian Gerard the Valuation of Collateralised Debt Obligations Multi Period Modelling in a Risk Neutral Framework Phd Thesis Dublin City University, 2005
SSRN Electronic Journal, 2000
SSRN Electronic Journal
The Eurozone needs a bank resolution regime that can work across seventeen independent nations of... more The Eurozone needs a bank resolution regime that can work across seventeen independent nations of diverse sizes with varying levels of financial development, limited fiscal co-responsibility, and with systemic instability induced by quick and low-cost deposit transfers across borders. We advocate a Coasean approach to bank resolution policy in the Eurozone, which emphasises clear and consistent contracts and makes explicit the public ownership of the externality costs of bank distress. A variety of resolution mechanisms are compared including bank debt holder bail-in, prompt corrective action, and contingent convertible bonds. We argue that the “dilute-in” of bank debt holders via contingent convertibility provides a clearer and simpler Coasean bargain for the Eurozone than the more conventional alternatives of debt holder bail-in or prompt corrective action.
This paper develops a restrictive procedure for evaluating economic policy decisions, by comparin... more This paper develops a restrictive procedure for evaluating economic policy decisions, by comparing actual economic history to a simulated history where a specific policy decision is replaced with a counterfactual, but credible, alternative. Our procedure is theoretically straightforward, but empirically problematic since it requires the identification of a feasible policy alternative and a model linking a specific policy choice to
Journal of International Money and Finance, 2012
Journal of International Money and Finance, 2012
O Kelly Brian Gerard the Valuation of Collateralised Debt Obligations Multi Period Modelling in a Risk Neutral Framework Phd Thesis Dublin City University, 2005
SSRN Electronic Journal, 2000
SSRN Electronic Journal
The Eurozone needs a bank resolution regime that can work across seventeen independent nations of... more The Eurozone needs a bank resolution regime that can work across seventeen independent nations of diverse sizes with varying levels of financial development, limited fiscal co-responsibility, and with systemic instability induced by quick and low-cost deposit transfers across borders. We advocate a Coasean approach to bank resolution policy in the Eurozone, which emphasises clear and consistent contracts and makes explicit the public ownership of the externality costs of bank distress. A variety of resolution mechanisms are compared including bank debt holder bail-in, prompt corrective action, and contingent convertible bonds. We argue that the “dilute-in” of bank debt holders via contingent convertibility provides a clearer and simpler Coasean bargain for the Eurozone than the more conventional alternatives of debt holder bail-in or prompt corrective action.
This paper develops a restrictive procedure for evaluating economic policy decisions, by comparin... more This paper develops a restrictive procedure for evaluating economic policy decisions, by comparing actual economic history to a simulated history where a specific policy decision is replaced with a counterfactual, but credible, alternative. Our procedure is theoretically straightforward, but empirically problematic since it requires the identification of a feasible policy alternative and a model linking a specific policy choice to
Journal of International Money and Finance, 2012