Finance
Research insight
INVITED EDITOR
Editorial from
João Santos
João Santos joined Nova School of Business and Economics as a Visiting Professor in September 2011. João Santos currently serves as Senior Vice President of the Federal Reserve Bank of New York.
November 16, 2022
17. Partnerships for the goals

17. Partnerships for the goals

Strengthen the means of implementation and revitalize the Global Partnership for Sustainable Development
LEARN MORE

A Theory of Collateral for the Lender of Last Resort

João Santos, Visiting Professor at Nova SBE, together with Choi, from Seoul University, and Yorulmazer, from Koc University, published their research that considers a macroprodential approach to analyze the optimal lending policy for the central bank.

This can inform and enhance global macroeconomic stability, fostering policy coordination and coherence.

The research paper can be found here.

ABSTRACT

We consider a macroprudential approach to analyze the optimal lending policy for the central bank, focusing on spillover effects that policy exerts on money markets. Lending against high-quality collateral protects central banks against losses, but can adversely affect liquidity creation in markets since high-quality collateral gets locked up with the central bank rather than circulating in markets. Lending against low-quality collateral creates counterparty risk but can improve liquidity in markets. We illustrate the optimal policy incorporating these trade-offs. Contrary to what is generally accepted, lending against high-quality collateral can have negative effects, whereas it may be optimal to lend against low-quality collateral.

João Santos
João Santos joined Nova School of Business and Economics as a Visiting Professor in September 2011. João Santos currently serves as Senior Vice President of the Federal Reserve Bank of New York.
LEARN MORE
SHARE

Keep reading

It Is Time to Consider Investing In Renewable Energies

In the beginning, investments in renewable energies only drew environmentally motivated capital. Money was allocated with the heart. But presently, it would be difficult for family offices and other types of investors to neglect the opportunities generated by clean energies.

Payments for Ecosystem Services explained: financing the planet’s regeneration

More than half of the world’s total GDP is dependent on Nature. There is an intrinsic and commonly recognizable value to the natural world, that is reflected, economically, in the concept of ecosystem services. So, how do these services work?

Internal Labor Markets, Wage Convergence and Investment

Rui Silva joined Nova SBE as an Assistant Professor in Finance! Recently, he published "Internal labor markets, wage convergence, and investment" in the Journal of Financial and Quantitative Analysis, 56(4), 1192-1227. Click to read the abstract and access the paper.

Finance Talks

Finance Talks are monthly informal discussion sessions that bring together students, faculty, and invited corporate guests to discuss relevant topics in Finance.

THE CHOICES OF

The local-for-local open innovation platform Nestlé Hatcher

Our first series dedicated to impact in Africa end with this lively and exciting conversation between Professor Filipe Alfaiate and Mr. João Barreto, the Head of Innovation and PMO at Nestle, based in South Africa. They discussed impact journeys, the BOP market in Africa, opportunities and challenges and in particular, a very interesting local-for-local open innovation platform for all in Africa called Nestlé Hatcher that João designed and launched. Good learnings!

Subscribe our weekly newsletter

By subscribing to the Nova SBE Role to Play newsletter, you can stay up-to-date on the latest articles posted on the website.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

We all have a role to play

We are on a mission to be a community dedicated to the development of talent and knowledge that impacts the world.

With just ten years to go, an ambitious global effort is underway to deliver the 2030 promise. We want to take a stand and we are calling on our community to showcase how they are contributing to the 17 Sustainable Development Goals, whilst influencing more and more people to unravel their role to play.

Here, you will find four different ways your ideas can flourish, dialogue can be enhanced, and action can take place. You can choose one or all four, and Nova SBE will be there to support you all the way and guarantee tangible change.

We all have a role to play, and this is your way in.