Toward a Framework for Safeguarding Financial Stability

June 1, 2004

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Format: Chicago

Toward a Framework for Safeguarding Financial Stability, (USA: International Monetary Fund, 2004) accessed November 21, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

This paper examines the emergence of financial stability as a key policy objective. It discusses the underlying trends in the financial system, as well as the role of finance in relation to money, the real economy, and public policy. Financial stability is defined in terms of its ability to help the economic system allocate resources, manage risks, and absorb shocks. Moreover, financial stability is considered a continuum, changeable over time and consistent with multiple combinations of its constituent elements. On the basis of these concepts, a framework is presented that comprises an encompassing analysis and assessment of financial stability, and maps out broad policy implications.

Subject: Asset prices, Banking, Financial crises, Financial sector policy and analysis, Financial sector stability, Financial stability assessment, Prices, Systemic risk

Keywords: Asset prices, Economic system, Financial sector stability, Financial stability, Financial stability assessment, Financial system performance, Financial-system policy, Foregone exchange opportunity, Market confidence, Market discipline, Market failure, Market imperfection, Market uncertainty, Payments system, Policy framework, Public goods, Systemic risk, Unit of account, WP

Publication Details

Pages:

48
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2004/101
Stock No:

WPIEA1012004
ISBN:

9781451852547
ISSN:

1018-5941

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