, lax financial regulation and supervision, and global macroeconomic imbalances. At a fundamental level, however, the crisis … monetary policy and financial regulation. The practice of both monetary policy and financial regulation had tended to become …

safeguard against this threat are absent in the wake of market frictions, prudent regulation and governmental provision of …

This paper assesses the merits of countercyclical bank balance sheet regulation for the stabilization of financial and …, though banks do not internalize this impact. Regulation, in the form of a constraint on bank leverage, can mitigate the … bank leverage regulation can have desirable stabilization properties, particularly when financial shocks are an important …