Here also, since the ability to raise resources depends on the retention of healthy credit ratings, municipal authorities have a very strong incentive to stay solvent and service their bond holders. In principle, therefore, such systems have been successful since they have ensured that towns and cities face on incentive structure that encourages them to remain creditworthy and are essentially self-financing.
The need for coordination and the fact that both monetary policy and macro-prudential policy take a macroeconomic perspective provide a strong motivation for integrating the two policy functions within one  30  See, for example, Adrian, T. and Shin, H.-S., “The Changing Nature of Financial Intermediation and the Financial Crisis of 2007–09”, Staff Reports, No 439, Federal Reserve Bank of New York, March 2010.