We develop a theoretical model examining the financial stability policy of a central bank serving as both the lender of last resort and the regulator of the financial system. Our model accommodates the possibility of financial contagion through interbank market linkages, and adverse feedback from the financial system to the real economy. We identify the volume of activity in the interbank money...

The development of the global economy is characterized by an increase in turbulence and restoration a cyclic crisis component development. An important driving force for financial stability bank, which manifests itself at all levels – from micro level to economic system. market banking services most dynamic segment market, where number subjects spectrum products, service technologies constantly...

The literature on the benefits and costs of financial globalization for developing countries has exploded in recent years. There seems to be a consensus that financial globalization has had a "discipline effect" on monetary policy, because it has reduced the returns from using monetary policy to stabilize the output. As a result, monetary policy over recent years has placed more emphasis o...

One of the great public policy concerns in the financial services arena is ensuring the stability of the U.S. financial system. One of the great threats to financial stability is disruption in the interbank market; that is, transactions between banks. These transactions consist of the exchange of payments by check or electronic means, usually through payment clearing mechanisms; the settlement ...

We adopt a time-varying cointegration test to discriminate among different empirical studies claiming to find a stable Euro Area money demand equation. A time-invariant relation explaining real balances is rejected by data, even when accounting for housing, financial and labour markets. Conversely, an international portfolio allocation approach provides stabilization. In particular, internation...

Reversal of financial market integration in Europe during the global financial crisis requires tools to measure and monitor banking sector stability. Banking sectors in Europe, especially in Central and Eastern countries, are characterized by a significant share of foreign capital and height level of concentration. This phenomenon may enhance the financial institutions to compete and probably t...