Essays on Financial Market Interventions
Finance has seen a spectacular growth in innovation and internationalization during the 20th century (Lane and Milesi-Ferretti, 2008; Shiller, 2013), resulting in a complex and highly interconnected network of financial entities spanning across jurisdictions (Allen and Gale, 1994; Popov and Udell, 2012). Meanwhile the challenges grow for policymakers to provide a framework which allows for the operation of a stable finan- cial system within their jurisdiction (Merton, 1995; Allen and Gale, 2000; Morrison and White, 2009; Ongena et al., 2013). The global financial crisis highlights that se- vere disruptions in the financial sector spread across jurisdictions (Wiggins and Met- rick, 2015) and can have large negative effects on the real economy (Chodorow-Reich, 2013). To contain systemic risk and contagion in the globalized financial system, sev- eral changes have been applied to the regulatory framework of international financial markets (G20, 2009). Regulatory efforts encompass among others the implementa- tion of macroprudential policies and the introduction of mandatory central clearing of derivatives. This thesis aims to contribute to the understanding of differential effects of financial policy reforms depending on the characteristics of the regulated financial entities and networks.
