The maturity of the operational target of monetary policy is a distinguishing feature of the SNB's operational framework of monetary policy. While most central banks use targets for the overnight rate to signal the policy-intended interest rate level, the SNB announces a target range for the...

The common monetary policy is applyed in all member states of the Economic and Monetary Union (EMU), having a common institutional system, common European currency and system of regulations that helps them coordinate the banking activities in all EMU. The application of this policy has brought...

The financial crises are generally associated with banking crises due to the role they play in their production, transmission and settlement. This paper presents a number of different approaches taken from the specialized literature on the causes that led to the outbreak of the financial crises.

The concept related to currency stability includes internal currency stability as intern price stability, the money demand and supply stability and the stability of the interest rate. Also it includes external currency stability through exchange rate mechanism. The equilibrium of national...

This paper summarizes my ideas about the causes of and solutions to the 2008 financial crisis and is intended to be written so that a non-specialist can grasp the content and contribute to the discussion. The first section focuses on the immediate causes of the crisis and the appropriate...

The failure of academic finance can be considered one of the symbols of the financial crisis. Two important underlying reasons why academic finance models systematically fail to account for real-world phenomena follow directly from two conventions: (a) treating economics not as a „true‟...

The financial services industry went through a dramatic turn of events during the past year or so, to an extent that many were questioning its long-term viability and sources of strength. While it is imperative that we try and learn as much as we can from past mistakes to prevent them from...

The aim of this work is to assess the impact of financial crises on output for 11 European transition economies (CEECs). The results suggest that financial crises have a significant and permanent effect, lowering long-term output by about 17 percent. The effect is more important in smaller...

Arbitrage normally ensures that covered interest parity (CIP) holds. Until recently, excess profits, if any, were documented to last merely seconds and reach a few pips. Instead, this paper finds that following the Lehman bankruptcy, these were large, persisted for months and involved strategies...

The recent financial crisis has intensified the debate on optimal financial supervision architecture. A broad consensus has emerged around the view that an inadequate regulatory framework and a fragmented supervisory architecture, both nationally and internationally, has not only been at the...