# Stabilizers, automatic (automatic stabilisers)

- Canonical URL: https://www.gerhardmerk.de/stabilizers-automatic-automatic-stabilisers-2
- Post ID: 590348
- Modified: 2023-07-25T21:12:13+00:00
- Language: en

## Definition

With respect to institutions, the requirement put forward by academics and regulators that - especially systemic banks - build up a capital cushion in good times that protects them from insolvency in bad times. - However, it is argued that - already the real-time determination of upswings and downswings in the credit cycle poses major problems even for central bank experts, because clear-cut, generally applicable (over each economic cycle), there are hardly any clear-cut, universally applicable (applicable over each economic cycle), empirically feasible and thus meaningful indicators available, and - there is no reliable clear procedure to determine how capital requirements should be clocked with the credit cycle. - Bank testament, capital ratio, regulatory, own funds, insolvency cases. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec. Professor Dr. Eckehard Krah, Dipl.rer.pol. E-mail address: info@ekrah.com https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk https://www.jung-stilling-gesellschaft.de/merk/ https://www.gerhardmerk.de/

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