Thierry Tressel and Thierry Verdier Introduction The financial crisis has ignited an intense policy debate on the determinants of incentives in the financial industry, and has resulted in substantial efforts to improve financial regulations to tame risk taking during booms and build capital buffers for downturns. There is now a […]
Author: InvestAdvocate
Inflation Targeting and Fiscal Rules: Do Interactions and Sequencing Matter?
Jean-Louis Combes, Xavier Debrun, Alexandru Minea andRené Tapsoba INTRODUCTION Since the 1990s, many countries have enacted extensive reforms of their macroeconomic policy frameworks. On the monetary side, central bank independence, often along with some form of inflation targeting (IT), is thought to have contributed to lower and more stable inflation […]
Financial Networks Key to Understanding Systemic Risk
By Camelia Minoiu and Sanjay Sharma May 28, 2014 Network perspective sees financial institutions as interrelated economic agents Interconnectedness in financial system part of the problem in the financial crisis Data gaps hinder translation of network analysis into policy With financial markets around the world so interconnected, the analysis of […]