Central Banks and the Financial System
---- Acknowledgements ----
Written for the Conference in Honour of Pentti Kouri: Helsinki, June 10-11, 2010. We thank Ricardo Caballero, Stephen Cecchetti and Fausto Panunzi for very useful discussions, and Bengt Hölmstrom and Philip Lane for their comments. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.