Monetary Policy and Financial Stability
August 28, 2015
Download PDF
Preview Citation
Format: Chicago
Summary
It is clear that well-targeted prudential policies (including micro and macroprudential regulation and supervision) should be pursued actively to attenuate the buildup of financial risks.
The question is whether monetary policy should be altered to contain financial stability risks. Should it lend a hand by temporarily raising interest rates more than warranted by price and output stability objectives? Keeping rates persistently higher is also possible, but more costly.
Subject: Central banks, Financial stability, Interest rates, Macroprudential policy, Monetary policy, Monetary transmission mechanism
Publication Details
-
Pages:
---
-
Volume:
---
-
DOI:
---
-
Issue:
---
-
Series:
Policy Papers
-
Stock No:
---
-
ISBN:
---
-
ISSN:
---
