Thorsten Beck, 01 June 2018

Hans-Werner Sinn, 04 April 2009

Banks’ balance sheets need to be fixed, but they cannot be allowed to shrink themselves back to health – instead of accepting government money – because that would severely harm the economy. This column proposes that any bank that cannot privately find at least 4% equity capital and a tier-one ratio of 8% must let the state supply the required capital and become a partner.


CEPR Policy Research