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In a global game, I show that creditor bailins, when well-designed, can attain the exact same level of bank stability … a bailout either if the bank is small in the economy or if the bank is large and the ex ante stability level of the bank …
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Although monetary policy is the main tool for central banking in order to control inflation/deflation, micro- and macroprudential instruments are also essential for crisis management. In this paper, we aim to clarify the differences between European and international banking methodologies. The...
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