Rethinking Pharmaceutical Innovation Policy

Misaligned incentives account for many of the most troubling features of the pharmaceutical industry’s present practices and performance.
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Liquidity dependencies in the euro area

This study investigates to what extent the significant liquidity injections by the ECB over the past 15 years may have created a dependency by banks on central bank liquidity itself. Following Acharya et al. (2024), I examine whether the ECB's liquidity provision changed banks' incentives to increase liquid deposits, potentially heightening their susceptibility to liquidity shocks.

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