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Indeed, she referred only to "stability policy".
More to the point: panic-proofing, as opposed to, say, asset bubble prevention or "systemic risk" mitigation, should be the central objective of financial stability policy at least insofar as financial stability policy is about preventing macroeconomic disasters.
"It brings problems in respect to stability policy that should not be underestimated". The joint rescue between the IMF and the EU would turn the Bundesbank into a "money-printing machine" for the purchase of Greek bonds, according to Rundschau.
Last week, the chancellor wrote in a newspaper article that the "Federal government is very conscious of the exemplary role model Germany assumes in terms of stability policy within the euro area".
In my book, The Money Problem: Rethinking Financial Regulation, recently published by the University of Chicago Press, I offer a novel take on the "shadow banking" problem arguably the central challenge for modern financial stability policy.
The book makes the case that, when it comes to financial stability policy, panics widespread redemptions of the financial sector's short-term debt—should be viewed as "the problem" (the main one, anyway).
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Some American economists often ask: Why on earth are the French and Latins so crazy about accepting German-style stability policies?
The Treasury philosophy was that all of its financial stability policies were intended to "foam the runway" for banks – making it easier for them to earn their way out of the crisis.
The penalty ensures that once private sources of funding become easer to access, official facilities will become less attractive (as is now happening), and this limits the associated risk of inflation.Policy makers have attempted to implement contingent financial stability policies more generally with much more mixed results.
While numerous works characterize stability conditions, stability policies and stable-system behavior, we concentrate on the influence of side information on the stable throughput region.
Andreas Schockenhoff, a leading CDU lawmaker who heads a Franco-German parliamentary group, told Reuters he expected Hollande to commit "very quickly" to "stability policies".
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