Table of Contents
Preface v
Acknowledgments vii
About the Editors ix
About the Contributors xi
Part I Special Addresses 1
Chapter 1 Challenges for Future Monetary Policy Frameworks: A European Perspective Vítor Constâncio 3
Chapter 2 Income Inequality: The Battlefield Casualty of Post-crisis Financial Policy Karen Shaw Petrou 13
Chapter 3 A Practical Case for Rules-based Macroprudential Policy Adam S. Posen 25
Part II Financial Regulation: The Evolving Macro-and Microprudential Landscape 37
Chapter 4 Evolving Micro- and Macroprudential Regulations in the United States: A Primer Diana Hancock 39
Chapter 5 The Regulatory Response to the Sovereign-Bank Nexus Luc Laeven 55
Chapter 6 Japan's Regulatory Responses to Banking Crisis Masami Imai 63
Chapter 7 The Costs and Benefits of Bank Capital Requirements Gianni De Nicolò 79
Part III Capital Regulation 91
Chapter 8 Capital Regulation: How Much Capital is Needed? Mark Carey 93
Chapter 9 CoCos: A Promising Idea Poorly Executed Richard J. Herring 103
Chapter 10 Capital Regulation: Lessons from a Macroeconomic Model Caterina Mendicino Kalin Nikolov Dominik Supera 121
Part IV Liquidity Regulation 133
Chapter 11 How Should Bank Liquidity be Regulated? Franklin Allen Douglas Gale 135
Chapter 12 How Do We Figure Out Optimal Liquidity Regulation? Douglas W. Diamond Anil K. Kashyap 159
Chapter 13 The Interplay Between Liquidity Regulation, Monetary Policy Implementation and Financial Stability Todd Keister 173
Chapter 14 Liquidity and Capital: Substitutes or Complements? Marie Hoerova 195
Part V Market Infrastructures, Central Clearing and Collateral Management 207
Chapter 15 An Incentive Theory of Counterparty Risk, Margins, and CCP Design Florian Heider 209
Chapter 16 Monitoring CCP Exposure, in Real Time if Needed Albert J. Menkveld 225
Part VI Regulation and Financial Innovation 237
Chapter 17 Innovation & Regulation: Some Preliminary Observations Michael S. Barr 239
Chapter 18 Financial Innovation and Regulation Thorsten Beck 249
Chapter 19 Thoughts about Financial Innovation Josh Lerner Peter Tufano 261
Chapter 20 How Technological Innovation Will Reshape Financial Regulation Carmelo Salleo 279
Part VII Bail-in Versus Bail-outs: Incentives and Financial Stability 293
Chapter 21 Bail-in-able Debt and Fragility Russell Cooper 295
Chapter 22 Government Guarantees to Financial Institutions: Banks' Incentives and Fiscal Sustainability Agnese Leonello 305
Chapter 23 The Unconvertible CoCo Bonds Paul Glasserman Enrico Perotti 317
Part VIII Where to from Here? 331
Chapter 24 The Macroprudential Toolkit Richard Berner 333
Chapter 25 The Great Financial Crisis and its Aftermath: A Perspective from Asia Hans Genberg 353
Chapter 26 Regulatory Reform: Where to from Here? Xavier Vives 361
