I analyze the optimal design of banking supervision in the presence of cross-border lending. Cross-border lending could imply that an individual bank failure in one country could trigger negative spillover effects in another country. Such cross-border contagion effects could turn out to be...

A perceived need to increase nominal wage flexibility as a substitute for domestic monetary policy and a tendency to less wage moderation are likely to promote bargaining co-ordination and social pacts in the EMU. But such co-ordination is not likely to be sustainable in the long run, as it...

This paper discusses the main findings of the Detailed Assessment of Observance of the Committee on Payment and Settlement Systems-International Organization of Securities Principles for Financial Market Infrastructures (FMIs) for the European Union. Euroclear Bank's risk framework is generally...