The positive relationship between bank CEO compensation and risk-taking is a well-established empirical fact. The global banking crisis has resulted in a chorus of demands to control bankers' bonuses and thereby curtail their risk-taking activities in the hope that the world can avoid a repeat...

"This article examines how interest rates should have been changed in response to the commodity price shock and the credit crunch under different assumptions for the decision rules that might be used by central banks." Copyright (c) 2009 The Author. Journal compilation (c) Institute of Economic...