Goodhart, Charles; Schoenmaker, Dirk - In: International Journal of Central Banking 5 (2009) 1, pp. 141-165
This paper focuses on the recapitalization of failing banks. A recapitalization is efficient if the social benefits (preserving systemic stability) exceed the cost of recapitalization. In a national setting, the implementation of an optimal policy is relatively straightforward. But in a...