Stability of the Financial System

Edited by Andreas Dombret, Adjunct Senior Research Scholar, Columbia University School of International and Public Affairs, New York, US and Otto Lucius, Managing Director, Austrian Society for Bank Research, Austria

• Contents:PrefaceStability of the Financial System – An IntroductionMark CarneyPART I: ABOUT FINANCIAL STABILITY1. Financial and Fiscal Stability Beyond the Crisis Years: Two Paradigm Shifts and their ConsequencesMartin Blessing2. Criteria for Financial Stability – The European ViewAndreas Dombret3. Criteria for Financial Stability – A US ViewNathan Sheets4. Financial Stability in BrazilLuiz Awazu Pereira da Silva, Adriana Soares Sales and Wagner Piazza Gaglianone5. From the Stability Pact to ESM – What Next?Claudia M. Buch6. Economic Convergence – The Need for Economic Cooperation and CoordinationWalter Rothensteiner and Valentin Hofstätter7. Banking System and Financial StabilityAndreas Ittner8. Competition, the Pressure for Returns, and StabilityPaul Tucker9. Measuring Systemic RiskJaime CaruanaPART II: THE CONSEQUENCES OF FINANCIAL INSTABILITY10. Sovereign RiskLorenzo Bini Smaghi11. Default of Systemically Important Financial Intermediaries: Short-Term Stability vs. Incentive CompatibilityYves Mersch12. Systemically Important Banks – Possible Options for Policy MakersKlaas H.W. Knot and Hanne van Voorden13. A Paradigm Shift: Resolution of BanksJean-Pierre Landau14. Consequences of Financial Shocks for the Real EconomyHiroshi Nakaso PART III: PREVENTION OF FINANCIAL INSTABILITY15. The Economics of Financial RegulationEwald Nowotny16. A Strategic Approach to Post Crisis Regulation – The Need for Pillar 4David T. Llewellyn17. Regulation of Banks and the ‘Level Playing Field’ – The Case of Shadow BankingOtto Lucius18. Enhancing Financial Stability – A Global Bank’s PerspectiveUlrich Körner19. Stable Liquidity and Funding FlowsJosé Manuel Campa Fernández20. How to Avoid Contagion and Spillover Effects in the Euro Zone?Michael C. Burda21. The New European Supervisory System – Harmonisation and Macroprudential OversightSabine Lautenschläger22. Macroprudential, Microprudential and Monetary Policies: Conflicts, Complementarities and Trade-OffsPaolo Angelini, Sergio Nicoletti-Altimari and Ignazio Visco 23. Why Central Banks need a Macroeconomic ToolkitPhilipp M. Hildebrand24. Lender of Last Resort – Which Institution Could Best Fulfil this Function?Gertrude Tumpel-GugerellStability of the Financial System: Illusion or Feasible Concept? An EpilogueChristine LagardeIndex

‘[the book] addresses the stability of the entire financial system and does so exceptionally well. It is a critical analysis and a treasure trove of specialist information and analytical viewpoints for the subject matter expert.’