Monetary policy and banking supervision: coordination instead of separation. CEPS Policy Brief No. 286, 12 December 2012

Introduction. Following the June 2012 European Council decision to place the ‘Single Supervisory Mechanism’ (SSM) within the European Central Bank, the general presumption in the policy discussions has been that there should be ‘Chinese walls’ between the supervisory and monetary policy arms of the ECB. The current legislative proposal, in fact, is explicit on this account. On the contrary, however, this paper finds that there is no need to impose a strict separation between these two functions. The authors argue, in fact, that a strict separation of supervision and monetary policy is not even desirable during a financial crisis when the systemic stability of the financial system represents the biggest threat to a monetary policy that aims at price stability. In their view, the key problem hampering the ECB today is that it lacks detailed information on the state of health of the banking system, which is often highly confidential. Chinese walls would not solve this problem. Moreover, in light of the fact that the new, proposed Supervisory Board will be composed to a large extent of representatives of the same institutions that also dominate the Governing Council, the paper finds that it does not make sense to have Chinese walls between two boards with largely overlapping memberships. In addition, it recommends that some members of the Supervisory Boards should be “independents” in order to reduce the tendency of supervisors to unduly delay the recognition of losses.

Movement of Juvenile Songbirds in Harvested Boreal Forest: Assessing Residency Time and Landscape Connectivity

Little is known about juvenile songbird movement in response to timber harvest, particularly in the boreal forest. If clearcut land cover facilitates movement, the availability of resources may increase. However, if clearcut land cover impedes movement, important post-fledging resources may be rendered inaccessible. Using radio telemetry, we tested the hypothesis that regenerating clearcut land cover would affect the movement of recently independent Yellow-rumped Myrtle Warblers (Dendroica coronata coronata) and Blackpoll Warblers (Dendroica striata) differently than forested land cover owing to intrinsic differences in each land-cover type or in how they are perceived. We found that both species moved extensively before migration. We also found that Blackpoll Warblers were quick to exit local areas composed of clearcut land cover and that both species were quick to exit neighborhoods composed of large proportions of clearcut land cover. However, if individuals encountered clearcut land cover when exiting the neighborhood, movement rate was slowed. Effectively, residency time decreased in clearcut neighborhoods and landscape connectivity was impeded by clearcut land cover. Our results suggest that clearcut land cover may represent low-quality habitat for both species during the post-fledging period. Further research is needed to determine if changes in movement behavior associated with landscape structure affect individual condition and higher-level ecological processes.