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