Can Regulation, Supervision & Surveillance save Euroland
The lesson that regulation and supervision of banks and financial markets must improve has now at last become conventional wisdom among politicians in...
Too Big to Fail in Banking: What does this mean?
Interest in TBTF resolutions of insolvent large complex firms has intensified in recent years, particularly in banking. TBTF resolutions protect some...
Safe to Fail
Banks cannot be made failsafe. But they can be made safe to fail, so that the failure of a bank need not disrupt the economy at large nor pose cost to...
The Optimal Finance Structure
Banking developed rather differently in Anglo-Saxon countries than on the European Continent and in Japan. In Anglo-Saxon countries, notably the UK...
The Potential Instruments of Monetary Policy
In most standard (Dynamic Stochastic General Equilibrium, DSGE) macro-models, there is a single riskless rate, set by the Central Bank in accord with...
“Theory anchors” explain the 1920s NYSE Bubble
The NYSE boom of the 1920s ended with the infamous crash of October 1929 and subsequent collapse in common stock prices from 1929-1932. Most...
Foresight: The Future of Computer Trading in Financial Markets
SRC researchers were involved in a study that explores how computer generated trading in financial markets will evolve over the next 10 years. The...
What should we do about (Macro) Pru? Macro Prudential Policy and Credit
Credit growth is widely used as an indicator of potential financial stress, and it plays a role in the new Basel III framework. However, it is not...
Taming the finance monster
The best way to resolve global financial instability is for the owners of capital to assert themselves, with sovereign funds well positioned to take...
Maintaining Confidence - Understanding and preventing a major financial institution failure mode
This paper proposes the solvency/liquidity spiral as an failure mode affecting large financial institutions in the recent crisis. The essential...
Bank Capital Standards: A critical review
The aim of this paper is to review the significant flaws in the Basel Accords, which undermine their contribution to stability in banking and...
A Coasean Approach to Bank Resolution Policy in the Eurozone
The Eurozone needs a bank resolution regime that can work across seventeen independent nations of diverse sizes with varying levels of financial...
Adjustment Mechanisms in a Currency Area
Both the euro-area and the United States suffered an initially quite similar housing and financial shock in 2007/8, with several states in both...
Investing for your own and the greater good
Most of us have been brought up to believe that free markets combined with healthy competition deliver good outcomes. We also presume that what holds...
