In remarks at a meeting of the Joint Economic Committee, President Charles I. Plosser discussed the importance of implementing regulatory changes that would help to avert financial crises in the future.

In a letter to senators in the Philadelphia Fed District, President Charles I. Plosser stressed that financial reform should avoid changes that would impede the Fed's ability to meet its congressionally mandated objectives.

This paper explores how to incorporate banks' capital structure and risk-taking into models of production. In doing so, the paper bridges the gulf between (1) the banking literature that studies moral hazard effects of bank regulation without considering the underlying microeconomics of...