-bail-out world, the trade-off between financial stability and the cost of capital, the feasibility for central banks to manage their …

banks play complex, long horizon games and face more than one tradeoff. We account for these issues in a simple infinite … bankruptcy. We term these factors discipline and stability effects, respectively. The central bank’s welfare decreases with … central banks cannot attain both low inflation and financial stability. …

influence the likelihood that policymakers assign banking supervision to central banks. We find that, conditional on the …

-crisis mandates" in Lucerne, Switzerland. The event brought together senior representatives of central banks and academic institutions …

institutions: banks, the shadow banking system and insurance companies. It concludes that, while substantial progress has been made …