Even in a world with rational expectations, it has been well established theoretically that if the central bank …

Whether central banks should play an active role in bank supervision and regulation is being debated both in the United … considering enhancing central bank involvement in this area. Many of the arguments for and against these proposals hinge on the … effect this change would have on the ability of the central bank to conduct monetary policy. We find that confidential …

Recently, several central banks have lost their bank supervisory responsibilities, in part because it has not been … monetary policy should be an important consideration when evaluating the structure of the central bank. …

Locating the function of bank supervision in the central bank has been a contentious issue, both domestically and … internationally. Most discussions of the role of bank supervision in central banking have focused on crisis management and the … responsibilities of the central bank as a lender of last resort. However, recent research by the authors has shown that confidential …

competitors. This paper was prepared for the Second Annual Conference of the Central Bank of Chile, "Banking, Financial …