So-called too-big-to-fail policy has two conflicting sides

Reference no: EM13693867

The so-called too-big-to-fail policy has two conflicting sides: on one hand there's the moral hazard problem that it creates, but in the other hand the Fed must:

Control the money supply

Ensure the employment of people in financial services

Promote competition among banks

Protect the stability of the banking system

Reference no: EM13693867

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