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...

We propose an integrated treatment of the problems of optimal monetary and fiscal policy, for an economy in which prices are sticky and the only available sources of government revenue are distorting taxes. Our linear-quadratic approach allows us to nest both conventional analyses of optimal...

"Forecast targeting is an innovation in central banking that represents an important step toward more rule-based policymaking, even if it is not an attempt to follow a policy rule of any of the types that have received primary attention in the theoretical literature on optimal monetary policy....