This paper offers a positive analysis of the relationships between macro prudential policy, micro supervision and central banking, presenting two contributions. Starting from the review of the recent theoretical models, which take the issue of the central bank involvement in macro supervision,...

The recent Global Financial Crisis (2008-2010) and the accompanying Great Recession (2008-2011) show that the level and the rate of monetary and financial systems integration deployed within the Euro area is not sustainable in the long run. Instead of acting as a buffer against external shocks...

One of the fundamental issue in implementing the twin peaks regime is deciding where the prudential supervisor should be housed, given that so far three options has been explored, i.e. the prudential supervisor could be outside the central bank, or be a subsidiary of the central bank, or be...

This paper deals with the study of improving the Balance of Payment of the Republic of the Philippines. The researchers hope that this paper will be helpful to the Philippines, as well as government officials and other stakeholders who will be involved in implementing some of the strategies as...

A crisis provides an opportunity to examine how an economy works under pathological conditions. What are the lessons? Markets work well most of the time. That said, the global financial crisis has weakened faith in the market’s self-equilibrating qualities. Fiscal policy works well to offset...

The article provides a review of the monetary policy strategies of four major central banks – the Eurosystem, the Federal Reserve, the Bank of Japan and the Bank of England – and investigates whether these strategies are modified in times of financial instability. The study finds a number of...

Agency mortgage backed securities (MBS) with diverse characteristics are traded in parallel with individualized contracts in the specified pool (SP) market and with standardized contracts in the to-be-announced (TBA) market. We find that this unique parallel trading environment significantly...