Kent Cherny

Economic Commentaries

• Economic Commentary

  Compensation and Risk Incentives in Banking and Finance

  Jian Cai Kent Cherny Todd Milbourn
  09.24.2010 | EC 2010-13
  We review why executive compensation contracts are often structured the way they are, analyze risk incentives stemming from various pay schemes, and examine the tendency of the banking and finance industry toward excessive risk-taking.
• Economic Commentary

  Reforming the Over-the-Counter Derivatives Market: What’s to Be Gained?

  Kent Cherny Ben R. Craig
  07.07.2010 | EC 2010-06
  While derivative financial instruments have made the hedging and exchange of risk more efficient, the recent crisis showed that they also pose a substantial threat to financial stability in times of systemic turmoil.
• Economic Commentary

  Credit Default Swaps and Their Market Function

  Kent Cherny Ben R. Craig
  09.22.2009 | EC 7/1/2009
  The market for credit default swaps is neither transparent nor regulated, perhaps undermining the stability of the financial system it has helped innovate.
  
  Topics: Lending and access to credit
  
• Economic Commentary

  Effective Practices in Crisis Resolution and the Case of Sweden

  Kent Cherny O. Emre Ergungor
  02.12.2009 | EC 2/1/2009
  The current financial crisis is a painful reminder that the developed world is not yet immune to these devastating shocks.