Financial systems are inherently fragile because of the very function which makes them valuable: liquidity transformation. Regulatory reforms can strengthen the financial system and decrease the risk of liquidity crises, but they cannot eliminate it completely. This leaves monetary policy with a...

At the heart of both the modern shadow banking system and the 19th century banking system described by Walter Bagehot is the wholesale money market, with the central bank providing a liquidity backstop. We characterize shadow banking as “money market funding of capital market lending” and...

This chapter contribution to an edited volume examines financial sector structural reform as a critical, though largely under-appreciated to date, dimension of central banks' post-crisis systemic risk prevention agenda. By limiting the range of permissible transactions or organizational...

Chapter 1. Public Communication of Central Banks. Theoretical Perspectives -- Chapter 2. Framing Theory -- Chapter 3. Research Design and Elements -- Chapter 4. NBR Representatives About the Change of Public Communication After 2008 -- Chapter 5. Public Perception of the NBR Communication After...

The study seeks to provide a critique of the theoretical framework of economic governance as it relates to the financial sector in Zimbabwe and identify institutions in the financial sector and explain their roles. It also seeks to unpack the concepts related to the banking or the financial...

Most theoretical central bank models use short horizons and focus on a single tradeoff. However, in reality central banks play complex, long horizon games and face more than one tradeoff. We account for these issues in a simple infinite horizon game with a novel tradeoff: higher rates deter...

This paper presents the results of a comprehensive survey conducted with 27 European Union (EU) central banks concerning their involvement in ensuring financial stability. The paper also introduces a novel methodology ("Financial Stability Engagement index") to measure central bank involvement...