Yet, as Nobel Laureate Joseph Stiglitz has stressed, inequality is also a choice. There are policies that can tackle it effectively. In order to inform policymakers and the broad public, research is indispensable. I was only able to highlight a few results of work by Bundesbank staff and of papers to be presented at this conference.
“Assessing the Risk of Banking Crises – Revisited.” BIS Quarterly Review (March): 29–46. Borio, C. and H. Zhu. 2008. “Capital Regulation, Risk-Taking and Monetary Policy: A Missing Link in the Transmission Mechanism?” Bank for International Settlements Working Paper No. 268. Brunnermeier, M. and Y. Sannikov. 2010. “A Macroeconomic Model with a Financial Sector.” Princeton University. May.