Where to Draw Lines: Stability Versus Efficiency

Thomas J. Sargent

    Research output: Contribution to journalArticlepeer-review


    What kinds of assets should financial intermediaries be permitted to hold? What kinds of liabilities should they be allowed to issue? Should a government or a central bank offer explicit deposit insurance or implicit deposit insurance by acting as a lender of last resort? This paper reviews how tensions involving stability versus efficiency, and regulation versus laissez faire, have for centuries run through macroeconomic analysis of these questions.

    Original languageEnglish (US)
    Pages (from-to)197-214
    Number of pages18
    Issue number310
    StatePublished - Apr 2011

    ASJC Scopus subject areas

    • Economics and Econometrics


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