In general, different models have different implications for what kinds of policies will stimulate current and future economic activity. However, reducing the tax rate on physical investment is an effective form of stimulus in a wide class of models. References Cole, Harold L., and Lee E. Ohanian. 1999.
More broadly, in most industrial countries today the central bank has substantial bank supervisory authorities, is responsible for broad financial stability, or both. 2  See Ben S. Bernanke (2010), letter to Christopher J. Dodd and Richard C. Shelby (with enclosure, “The Public Policy Case for a Role for the Federal Reserve in Bank Supervision and Regulation”), January 13.