The introductory quotes in combination with the below figure illustrate the relevance of financial stability policy in economic policy making in the 21st century very pointedly: Financial instability in the form of crisis is a very rare ‘black swan’-type of event, but when it occurs it has a devastating effect on financial systems and economies at large. Because of this very rare and usually delayed occurrence of crises, financial stability policy also is subject to a very own political economy dynamic.


Depression Income Expense Nash Volatility 

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© Springer Fachmedien Wiesbaden 2014

Authors and Affiliations

  • Gundbert Scherf
    • 1
  1. 1.Freie Universität BerlinBerlinGermany

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