The Ideal Central Bank

To figure out what a central bank should look like, consider that most have three features in common: independence, transparency and a goal of low and stable inflation.

Politicians See Silver Lining

Natural disasters can be opportunities for politicians. In deciding who gets what aid, they weigh what they can get back in terms of political support, contributions and votes.

Assessing Liquidity

By traditional measures, liquidity risk for banks is higher today than 10 years ago. But new measures—necessitated by new funding sources—tell another story.