Exam (elaborations)
ECON0038 Money and Banking Essay UCL
- Institution
- University College London (UCL)
A copy of the 2022/23 final essay for ECON0038 Economics of Money and Banking.
[Show more]
Content preview
The Economics of the Money and BankingECON0038 AY 2022/23
Module leader: Dr Silvia Dal Bianco
Coursework: Individual Essay, worth 65 of module final mark
Submission: Turnitin Link
Submission Deadline: Friday March 24th 2023 12:00 pm (noon), London time
Assignment: write an essay EITHER on Question 1 OR on Question 2
You need to provide JUST ONE ANSWER TO ONE QUESTION
Please check the Assessment’s coversheet for word-count and other instructions
Question 1
Since the Great Depression policymakers have struggled to define the right mix of
competition rules and regulations that should enable both financial stability and the efficient
functioning of the banking industry.
Discuss this statement and explain which regulatory framework you would establish for
mitigating the potential negative effects of competition on stability.
Explain your answer clearly using economic analysis, empirical evidence and real world
examples to support your discussion.
Reference: Beck, T. H. L., Coyle, D., Dewatripont, M., Freixas, X., & Seabright, P. (2010). Bailing
out the Banks: Reconciling Stability and Competition. (CEPR Report). CEPR.
Question 2
Alessandri and Haldane (2009) affirm that there is a doom loop in retail banking regulation.
Their ideas can be summarised as follows: while governments say “never again” to the
prospect of intervening to save financial institutions from the costs of their bad business
decisions, bankers don’t believe them. Bankers therefore double their bets and banks grow
bigger and bigger. This adds to the cost of future crises. And the larger these costs, the lower
the credibility of ‘never again’ announcements. This is a doom loop (authors’ words in italics).
Provide an economic explanation of this doom loop in regulation of retail banking and explain
the consequences on this doom loop for the design of banking regulation.
Explain your answer clearly using economic analysis, empirical evidence and real world
examples to support your discussion.
Reference: Alessandri, P. and Haldane, A. G. (2009). Banking on the state. Speech delivered at
the Federal Reserve Bank of Chicago 12th Annual International Banking Conference , Nov 6.
1
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller joelchoo. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for £6.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
75323 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy revision notes and other study material for 14 years now