UK politicians don’t want to talk about sportswashing

There are plenty of British politicians who love talking about sport. It makes them appear normal, grounded and relatable to voters.

But it seems that not many enjoy talking about the political side of it – especially the concept of “sportswashing”, when sport is allegedly used by a country to deflect attention away from concerns over issues such as human rights violations it might be involved in.

A theory of bank liquidity requirements

We develop a general equilibrium theory of financial intermediation and its implications for liquidity regulation. The model is built around an agency problem arising from leveraged intermediation: banks finance loan origination with deposits and face moral hazard in risk management, while holding cash mitigates these incentives at the cost of foregone investment returns. Liquidity demand therefore emerges endogenously from incentive considerations rather than from exposure to exogenous funding shocks.

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