IDEAS home Printed from https://ideas.repec.org/a/fip/fedreb/y2010ijunen10-06.html
   My bibliography  Save this article

Now how large is the safety net?

Author

Listed:
  • Jeffrey M. Lacker
  • John A. Weinberg

Abstract

According to estimates done by researchers at the Richmond Fed, the federal financial safety net covered $25 trillion in liabilities, or 59 percent of all financial liabilities, at the end of 2008. Such expansion of the safety net has weakened market discipline and contributed to instability in the financial sector. Instead of attempting to address the "too big to fail" problem by breaking up large firms, for instance, policymakers ought to focus on credibly scaling back the safety net and making its boundaries transparent.

Suggested Citation

  • Jeffrey M. Lacker & John A. Weinberg, 2010. "Now how large is the safety net?," Richmond Fed Economic Brief, Federal Reserve Bank of Richmond, issue June.
    • Handle: RePEc:fip:fedreb:y:2010:i:june:n:10-06
    as

    Download full text from publisher

    File URL: https://fraser.stlouisfed.org/files/docs/historical/frbrich/econbrief/frbrich_eb_10-06.pdf?utm_source=direct_download
    File Function: Full Text
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    Financial markets;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:fip:fedreb:y:2010:i:june:n:10-06. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Christian Pascasio (email available below). General contact details of provider: https://edirc.repec.org/data/frbrius.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.