This stimulating and original Handbook offers an updated and systematic discussion of the relationship between central banks, financial regulation and supervision after the global financial crisis.

We characterize the second-best public-goods provision rule with an inequality-averse principal. Our main results show how the provision rule reacts to variations of an exogenous budget available for public-goods provision when the principal exhibits different levels of inequality aversion.

We analyze whether banking supervision responsibilities should be concentrated in the hands of a single supervisor. We find that splitting supervisory powers among different supervisors is a superior arrangement in terms of social welfare to concentrating them in a single supervisor when the...