Publications

Public Policy Brief Highlights No. 69A | November 2002

Should Banks Be "Narrowed"?

An Evaluation of a Plan to Reduce Financial Instability
In this brief, Biagio Bossone of the International Monetary Fund evaluates narrow banking from the perspective of modern theories of financial intermediation. These theories portray the status quo banking system as a solution to otherwise intractable problems of imperfect information, risk, and even moral hazard. The system's characteristic coupling of liquid liabilities with illiquid assets—seen by some as an undesirable "mismatch"—in fact contributes greatly to the efficiency of the economy. Bossone argues that these efficiency gains outweigh the disadvantages associated with the existing legal framework.
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Author(s):
Biagio Bossone

Publication Highlight

Working Paper No. 916
Unconventional Monetary Policies and Central Bank Profits
Seigniorage as Fiscal Revenue in the Aftermath of the Global Financial Crisis
Author(s): Jörg Bibow
October 2018

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