The Insufficiency of Traditional Safety Nets: What Bank Resolution Fund for Europe?
This paper analyzes the rationale for Bank Recovery and Resolution Funds (BRRFs) in the context of the present European Union’s (EU) decentralized...
Tackling the “Too Big To Fail” conundrum: Integrating market and regulation
Systemic risk is, by nature, unpredictable. Statistical models can fail to identify it. We need to maintain resource buffers as well as to implement...
The flip side: high frequency trading
HFT has its benefits but also poses potential systemic risks. Bruno Biais and Paul Woolley discuss the need for deft regulation.
Legal Aspects of Bank Bail-Ins
The aim of the bail-in proposal is that governments should have an alternative option to taxpayer-funded rescues of systemic banks. It operates...
Minsky's Financial Instability Hypothesis and the Leverage Cycle
Busts after periods of prolonged prosperity have been found to be catastrophic. Financial institutions increase their leverage and shift their...
The relationship between the objectives and tools of macroprudential and monetary policy
Speaking notes for a debate on 28th March 2011 at the Financial Markets Group, London School of Economics.
Fiscal Dominance and the Long-Term Interest Rate
Very high government debt/GDP ratios will increase uncertainty about inflation and the future path of real interest rates. This will reduce...
The U.S. political brawl over the causes of the crisis. Some Critical Comments
The Final Report of the National Commission on the Causes of the Financial and Economic Crisis in the United States was released on January 27 2011...
The changing role of central banks
Although Central Banks have pursued the same objectives throughout their existence, primarily price and financial stability, the interpretation of...
