15  Philippon, T., (2010), “Financiers versus Engineers: Should the Financial Sector be Taxed or Subsidized?”, American Economic Journal: Macroeconomics, 2(3), pp. 158–182. 16  Modigliani, F. and Miller, M. (1958), The Cost of Capital, Corporation Finance and the Theory of Investment”. American Economic Review 48 (3) pp. 261–297. BIS central bankers’ speeches  5  for banks.
Central banks’ policy responses: “catastrophe insurance” provider In order to address this problem, the central banks of developed countries first conducted ample and enhanced liquidity provision by offering more frequent operations to more counter parties at longer maturities and against broader collateral, in addition to series of policy rate cuts.