the central bank is uninformative about the financial resources it has at its disposal and about its ability to act as an … exchange-denominated liabilities or index-linked liabilities, it will always be possible for the central bank to ensure its … central bank solvency may undermine price stability. In addition, there are limits to the amount of real resources the central …

, even ignoring interconnectedness issues, the failure of a bank causes a larger welfare loss than the failure of other … optimal fiscal response to such a shock is to help people, not banks, and the size of this response should be larger if a bank …

Shocks to bank lending, risk-taking and securitization activities that are orthogonal to real economy and monetary … type of shock. Expansionary securitization shocks lead to a permanent rise in real GDP and a fall in inflation. Bank … using a model of bank risk-taking and securitization. …

also contributed, through the deeply subsidised bank funding it provided through the 3-year LTROs, half of a mechanism to …

lending to the banks’ owners, although they strongly maintained otherwise in autumn 2007. Neither the FSA nor the Central Bank …

We develop a dynamic stochastic general equilibrium model to study bank risk and sovereign risk interdependence in the …