Central Banking, Macroprudential Supervision and Insurance

Download or read book Central Banking, Macroprudential Supervision and Insurance written by Donato Masciandaro and published by . This book was released on 2014 with total page 38 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper offers a positive analysis of the relationships between central banking, macro prudential supervision and insurance, presenting three contributions. Starting from the review of the recent theoretical models, which directly or indirectly take the issue of the central bank involvement in macro supervision, it has been discovered that two relevant topics are missed: the political economy of the macro supervisory architecture design and the role of the insurance interconnectedness. Therefore a principal agent model is used to design a political economy framework, which explains how the politicians can shape the central bank governance in addressing systemic risks in insurance. Finally, the framework is used to analyse the present institutional settings in 39 countries.