The paper gives an overview over issues concerning the role of financial stability in monetary policy. Historically, financial stability has figured highly among central banks´ objectives, with policy measures ranging from interest rate stabilization to serving as a lender of the last resort....

McAfee and Reny (1992) have given a necessary and sufficient condition for full surplus extraction in models with a continuum of types. We interpret their condition as significantly stronger version of the requirement of injectiveness of the function mapping abstract types into beliefs and prove...

In a large economy, a first-best provison rule for a public good is robustly implementable with budget balance because no one individual alone can affect the aggregate outcome. First-best outcomes can, however, be blocked by coalitions of agents acting in concert. With a requirement of immunity...

Der Aufsatz diskutiert die Rolle der Wirtschaftswissenschaft in der politischen oder juristischen Diskussion über den Umgang mit ökonomischen Sachverhalten und Zusammenhängen. Die Künstlichkeit der in theoretischen Modellen oder Laborexperimenten untersuchten Welten wirft die Frage nach dem...

A European banking union is necessary to ensure the stability of the European financial system. This paper assesses the EU Commission's proposals for legislation to create a banking union in Europe. The EU Commission's proposal for a regulation creating a single supervisory mechanism is strongly...

McAfee and Reny (1992) have given a necessary and sufficient condition for full surplus extraction in naive type spaces with a continuum of payoff types. We generalize their characterization to arbitrary abstract type spaces and to the universal type space and show that in each setting, full...

Beginning with the proposal by Enria (2017), the paper discusses the scope for successful bank restructuring through a carveout of impaired assets and a transfer of these assets to a government-sponsored asset management company. The paper argues that the success of such an operation requires a...

For a countable product of complete separable metric spaces with a topology induced by a uniform metric, the set of Borel probability measures coincides with the set of completions of probability measures on the product o-algebra. Whereas the product space with the uniform metric is...

The first part of the paper considers the effects of pre-empting a resolution procedure for a troubled financial institution by a precautionary recapitalization as specified in Article 32 (4) (d) of the Bank Recovery and Resolution Directive (BRRD). Benefits are seen for the maintenance of...

Im Gefolge der Finanzkrise werden Forderungen nach einer Reform oder sogar einer zeitlichen Aussetzung von Basel II laut. Kritisiert wird vor allem die systemimmanente Prozyklizität. Ist dieser Mechanismus mitverantwortlich für die bestehende oder vermeintliche Kreditklemme? Martin Hellwig...