Martina Jasova headshot

On March 26, 2021, Villanova University will hold their annual conference showcasing recent research in finance and economics. Among the scholarship accepted by the VSB Mid-Atlantic Research Conference in Finance Program is research co-written by economics professor Martina Jasova, for which her team won the conference's award for best paper. The paper has also been accepted into the upcoming ECB-RFS Macro-Finance Conference.

In the paper, "Systemic Risk and Monetary Policy: The Haircut Gap Channel of the Lender of Last Resort," Jasova and her colleagues investigate the effects of central banks' collateral policies, finding that these policies result in an "interbank monitoring," or an interconnected system of collateral amongst banks. The economists then use these findings to analyze behaviors of banks in financially "distressed" countries, including their relationships to their central banks, also known as their lenders of last resort.