Can rising asset prices reduce wealth inequality? This paper builds a continuous-time heterogeneous-agent general equilibrium in which entrepreneurs hold risky private capital and traditional savers hold safe assets. Safe-asset expansions—via financial innovation, public debt, or a stable equity bubble—operate through a single pass-through: they lower entrepreneurs’ undiversified risk exposure, compress risk premia, and raise the interest rate.

Hearings that began Wednesday in Washington reflected anxiety over the future of the U.S.-Mexico-Canada trade pact and whether the president could end up scrapping it.

The Conversation, CC BYIt often seems like a great idea at the time. There’s a streaming service, paywalled news site or premium version of an app you want to try, offering a “no strings attached” free trial.

You sign up – with a few easy clicks and your credit card. The trial period passes, and for whatever reason, you decide this product isn’t for you.

We employ 68 quarters of data – including from non-public supervisory sources – to study how 17 US and 17 euro-area banks balance the risk of breaching regulatory requirements against the cost of maintaining and speedily restoring “management” buffers. We find that steady-state management buffer targets systematically declined and regulatory risk tolerance (RRT) rose following the Great Financial Crisis, especially at banks experiencing a stronger increase in capital requirements.