The objective of this note is to present the evolution of both the economics and the political economy of monetary policy in the last three decades – first the Great Moderation and then the Financial Crisis – as a story of two intertwined tales: on the one side the tale of how to govern...

In this paper bank bailout rules and central bank independence (CBI) are determined by majority voting. The failure of a bank is socially costly, since bailouts are financed by distortionary taxation. The tax distortion can be reduced via monetization, i.e. lowering CBI; but monetization causes...

This paper offers a positive analysis of the relationships between macro prudential policy, micro supervision and central banking, presenting two contributions. Starting from the review of the recent theoretical models, which take the issue of the central bank involvement in macro supervision,...

This paper offers a positive analysis of the relationships between central banking, macro prudential supervision and insurance, presenting three contributions. Starting from the review of the recent theoretical models, which directly or indirectly take the issue of the central bank involvement...