Monetary and macroprudential policies

Sun, 05/22/2011 - 19:00 EDT - Vox - EU

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Paolo Angelini, Stefano Neri, Fabio Panetta, 23 May 2011The global financial crisis has prompted an intense debate on the role of macroprudential policies in limiting the accumulation of risks and imbalances. Major economies have recently established new institutions, or strengthened existing ones, with a mandate to pursue financial stability. This column examines the effectiveness and consequences of macroprudential policies with a focus on their interaction with monetary policy.Full Article: Monetary and macroprudential policies

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The interaction between monetary and macroprudential policies
Stijn Claessens, Fabian Valencia, 14 March 2013Inflation targeting once seemed sufficient, yet since the Global Crisis maintaining financial stability and price stability has required more than one monetary-policy tool. We are witnessing the rise of macroprudential policy. This column discusses how monetary and macroprudential policies interact and what it means for policy and institutional design.
YELLEN: Monetary Policy Shouldn't Change Because People Are Worried About Financial Stability
Fed Chair Janet Yellen says that despite concerns about rising asset prices and low volatility, monetary policy should not be subject to financial stability concerns. Yellen is speaking at an inaugural central banking lecture at the IMF in Washington.
Integrating monetary policy and macroprudential regulation
Otaviano Canuto, Matheus Cavallari, 21 May 2013The global financial crisis has shattered the confidence of many established principles of monetary policy and financial supervision. This column argues that the two should not remain separate, and maps out the major challenges faced by their complementary implementation.Full Article: Integrating monetary policy and macroprudential regulation
<a href="/article/monetary-policy-and-housing-prices-lessons-140-years-data">Monetary policy and housing prices: Lessons from 140 years of data</a>
Housing played a major role in the Global Crisis, and some worry that the ultra-low interest rate environment is inflating new housing bubbles. Using 140 years of data from 14 advanced economies, this column provides a quantitative measure of the financial stability risks that stem from extended periods of ultra-low interest rates. The historical insights suggest that the potentially destabilising by-products of easy money must be taken seriously and weighed carefully against the stimulus benefits. Macroeconomic stabilisation policy has implications for financial stability, and vice vers
“Financial Adjustment in the Aftermath of the Global Crisis 2008-09: A New Global Order?”
That’s the title of a conference that took place at USC this weekend, co-organized by Joshua Aizenman, Menzie Chinn and Robert Dekle, and cosponsored by the USC Center for International Studies, USC
Prospects for Asia and the Global Economy: 2013 Federal Reserve Bank of San Francisco: 2013 Asia Economic Policy Conference
November 3, 2013: Dinner: John C. Williams, Jerome H. Powell November 4, 2013:
Guest Contribution: "Is the Federal Reserve Breeding the Next Financial Crisis?"
Today, we are fortunate to have a guest contribution by Ambrogio Cesa-Bianchi and Alessandro Rebucci. It is based upon Does Easing Monetary Policy Increase Financial Instability?.
Canada should stay the course on current monetary policy, says former Bank of Canada head
OTTAWA — More than anything, the financial crisis of 2008-09 was responsible for ushering in a new era of “creative thinking” by central bankers. That translated into near-zero interest rates, followed by rounds of quantitative easing — pumping massive amounts of money into financial systems — and providing monetary policy guidance well beyond the horizon. Now, some are casting even wider nets to include the direct oversight of financial institutions themselves. This is the case in the United States, European Union and the U.K.
'The Crisis as a Classic Financial Panic'
Ben Bernanke on how the bank panic of 2007 is similar to the panic of 1907:
Financial stability is a task for central banks
Itai Agur, Maria Demertzis, 13 January 2011What institutions should be responsible for financial stability? Do governments need distinct regulators for distinct objectives or should central banks pursue both price stability and financial stability? This column argues that monetary policy inevitably will involve considerations of financial stability due to its effects on banks' risk taking and says that central banks should embrace this dual role.Full Article: Financial stability is a task for central banks

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