This paper surveys the problems exposed by the global financial crisis in the areas of financial regulation and supervision and possible solutions. It also discusses a number of lessons for central bank policy as well as some international dimensions. The discussion is based on the view that...

This paper develops a micro-founded general equilibrium model of the financial system composed of ultimate borrowers, ultimate lenders and financial intermediaries. The model is used to investigate the impact of uncertainty about the likelihood of governmental bailouts on leverage, interest...

This paper describes the changes that occurred in the conduct and in the instruments of monetary policy used by major central banks when the crisis hit, discusses the new tradeoffs and controversies engendered by those policy reactions, and speculates about additional likely future changes in...