Financial Innovations and Monetary Policy

Financial Innovations and Monetary Policy Discuss the concept of “too big to fail” within the financial sector. What are the arguments in favour of this concept, and what are possible negative consequences? References to start with: Mishkin, F., (2016): The Economics of Money, Banking, and Financial Markets, 11th Global Edition, Pearson,, chapter 10. Hetzel, R., (1991): “Too Big to Fail: Origins, Consequences, and Outlook”, Economic Review, 3- 15. Mishkin, F., (2006): “How Big a Problem is Too Big to Fail? A Review of Gary Stern and Ron Feldman’s Too Big to Fail: The Hazards of Bank Bailouts”, Journal of Economic Literature, Vol. 44 (Number 4), 988-1004