The simple analytics of systemic liquidity risk regulation

Authors
Publication date 16-03-2011
Journal VOX : Research-based Policy Analysis and Commentary from leading Economists
Volume | Issue number 2011
Organisations
  • Faculty of Economics and Business (FEB) - Amsterdam Business School Research Institute (ABS-RI)
Abstract How to regulate systemic risk? This column presents a new CEPR discussion paper assessing the performance of Pigouvian taxes and quantity-based regulations in containing the social costs of high-risk banking. It finds that, depending on how banks differ, the socially efficient solution may be attained with Pigouvian taxes, quantity regulations, or a combination of both.
Document type Article
Language English
Published at http://www.voxeu.org/index.php?q=node/6213
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