According to Stigler’s capture theoryregulation often follows the preferences of producers.Therefore, the interests of the financial industry might be amajor driving force for the ongoing supervisory reform debate.This paper identifies possible interests of the regulatedindustries: Either they...

Analyzing ongoing changes in the design of regulatory and supervisory authorities over the banking and financial industry in Europe, this comprehensive Handbook pays particular attention to the role of national central banks, the new financial supervisory authorities and the European Central...

Abstract Mainstream economists are reluctant to integrate features of bounded rationality into their behavioural assumptions. However, particularly in the field of economic policy the scope for limited rationality is given, since voters lack incentives for rational reasoning concerning their...

Abstract In his contribution Carsten Hefeker points out that most of the official arguments concerning the necessity of the Stability and Growth Pact are not convincing. Nevertheless, a mechanism that credibly avoids excessive debts and deficits is needed in most member states. It would be more...

Abstract Immediate effects of institutional reforms on growth and employment are highly important for political agents who frequently have short time horizons. Positive effects of expectations are a suitable transmission channel for a fast success of economic reforms. We analyse whether economic...