During the global financial crisis integrated markets and financial institutions operating across borders clashed with supervisory and regulatory architectures that remained largely nation bound. This spurred a debate on the costs and benefits of more internationally integrated and coordinated prudential policies. This paper presents theoretical explorations of the policy and governance challenges associated with forming and running a regulatory and supervisory union when national prudential authorities have different objective functions.
Giovanni Dell'Ariccia is Deputy Director of the Research Department where he supervises the activities of the Macro-Financial Division. Previously he worked in the Asia and Pacific Department. His research interests include: Banking; the Macroeconomics of Credit; Monetary Policy; International Finance; and Conditionality in International Lending and Aid Programs. He is a CEPR Research Fellow.