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The pending enlargement of the European Monetary Union (EMU) has brought to the fore the discussion of the voting right … policy implications for EMU enlargement and ECB restructuring. -- monetary policy ; wage setting ; European Monetary Union … ; European Central Bank ; euro area ; ECB reform ; EMU enlargement ; accession countries …
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We develop a simple model that looks at the incentives of private banks to behave prudentially and undertake costly efforts to lower the probability of bankruptcy or having to be bailed out by a lender of last resort. Government regulators can force banks to increase efforts beyond the privately...
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