bank sets policy under discretion, even if societyu0092s loss function is specified in terms of inflation (instead of price … impose costs on society rather than benefits. While rational expectations and perfect credibility are generally beneficial with …

multinational bank. We take a political economy approach to regulation and assume that supervisors maximize the welfare of their own … interests are, the higher is welfare; (3) the bank can allocate its investments strategically across countries to escape closure. …

In this paper we assess the importance given in capital markets to the credibility of the European fiscal framework. We …

We model the impact of bank mergers on loan competition, banks' reserve holdings and aggregate liquidity. Banks compete … in liquidity risk and expected liquidity needs for each bank and for the banking system. Large mergers tend to increase … expected aggregate liquidity needs, and thus the liquidity provision by the central bank. Comparative statics suggest that a …