Abstract In this paper, we present two models in which the introduction of a “lender of the last resort” significantly affects the banking sector. In the first model, the introduction is stabilizing. However, in the second model it is destabilizing. Both models are very well suited to...

Abstract The paper discusses the conduct of monetary policy of the ECB. We estimate monetary policy rules for the sample period 1999 through 2004. The results are in line with the change of the strategy the ECB recently announced. The implied inflation targets that are extracted from the...

Abstract In the context of the discussion of the new financial architecture the idea of a Tobin tax is revived. Mainly due to the pressure of several non-governmental organisations (NGO’s) the Tobin tax is currently discussed seriously in various policy circles. Recently, the German Federal...

Abstract Due to changes in the German Corporate Governance Code the transparency of compensation of the members of the management board has become a central element of the German corporate governance system. We analyze how the new transparency will influence the average compensation level. It...

Abstract We analyze the law regarding the adequacy of executive directors’ compensation in Germany. First we provide an overview of the law’s contents clustered in four different fields. We also introduce economic theories to analyze the principal-agent relationship with one principal...