Published Review of Economic Studies Online 19 Sep 2025 Published Jul 2026On the Optimal Design of a Financial Stability FundÁrpád Ábrahám · Eva Carceles-Poveda · Yan Liu · Ramon MarimonThis paper asks how to optimally design a Financial Stability Fund (Fund) for a union of sovereign countries that must simultaneously (i) prevent sovereign default, (ii) provide risk-sharing and …