Risk-sharing A distinct feature of monetary policy in a monetary union is that it might entail differences in transmission across countries or regions, reflecting differences in the financial structure or other country-specific factors.
We have now taken some initial steps towards this goal – through the Financial Stability Board principles at an international level and the agreement to create a Single Resolution Mechanism at a European level. Even so, there is still a long road ahead of us. Second, each bank resolution throws up the same question: who should bear the costs?