Transcription of Financial Stability and Monetary Policy: How …
{{id}} {{{paragraph}}}
Example: quiz answers
Financial Stability and Monetary Policy: How …
Financial Stability and Monetary Policy: How Closely Interlinked? frank SmetsEuropean Central BankThe recent Financial crisis has again raised the questionto what extent price- Stability -oriented Monetary policy frame-works should take into account Financial Stability this paper I argue that the answer will depend on threequestions: (i) how effective is macroprudential policy in main-taining Financial Stability ? (ii) what is the effect of monetarypolicy on risk taking and Financial Stability ? and (iii) what isthe risk of Financial dominance, , the risk that Financial sta-bility considerations undermine the credibility of the centralbank s price Stability mandate? I review the theory and evi-dence and conclude that while the new macroprudential policyframework should be the main tool for maintaining financialstability, Monetary policy authorities should also keep an eyeon Financial Stability .
Financial Stability and Monetary Policy: How Closely Interlinked?∗ Frank Smets European Central Bank The recent financial crisis has again raised the question
Loading..
Tags:
Information
Domain:
Source:
Link to this page:
Please notify us if you found a problem with this document: