There is now a remarkably strong consensus among academics and professional economists that central banks should adopt explicit inflation targets and that all key monetary policy decisions, especially those concerning interest rates, should be made with a view to ensuring that these targets are...

This paper assesses the choice of different regulatory policy instruments for crisis management and prevention. We show that Capital and Liquidity Requirements (as Basel III proposes) are not sufficient to ensure Financial Stability. Three different tools are required to address three different...