A Schematic View of Government as a Regulator and Insurer of the Financial System

Henri-Paul Rousseau

CIRANO Working Papers from CIRANO

Abstract: The purpose of this paper is to present a schematic of the interactions between the government as the REGULATOR of financial institutions and the government as the INSURER of financial institutions while considering the long-term feedback relationships between the size and the scope of the financial sector and the level of public debt resulting from financial crises over time. The analysis concludes that at certain high level of public debt and size of the expected support of the financial sector by the government, the regulator and/or the central bank may have to “stabilize” the situation, but there may be cases where the support becomes socially “unacceptable”.

Keywords: Regulation; Regulator; Insurer; Financial; Government; Support; Public; Debt (search for similar items in EconPapers)
Date: 2021-03-11
New Economics Papers: this item is included in nep-cba
References: View complete reference list from CitEc
Citations:

Downloads: (external link)
https://cirano.qc.ca/files/publications/2021s-12.pdf

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cir:cirwor:2021s-12

Access Statistics for this paper

More papers in CIRANO Working Papers from CIRANO Contact information at EDIRC.
Bibliographic data for series maintained by Webmaster ().