A safer world financial system: Improving the resolution of systemic institutions

Original source: SimoleonSense.com .

Sorry for the sparse posts…I’ve been spending some time preparing several surprise interviews.

Introduction (via Stijn Claessens Richard J. Herring Dirk Schoenmaker Voxeu)

The major economies’ financial reforms come up short on one crucial aspect – the resolution of systematically important cross-border financial institutions. This column introduces the latest Geneva Report on the World Economy, which advocates a two-tier solution to this problem – a universal approach for closely integrated countries such as EU members and a modified universal approach for other countries. It explicitly rejects the territorial or go-it-alone approach.

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