Monetary Policy Transmission and Financial Stability in a LIC
Title | Monetary Policy Transmission and Financial Stability in a LIC PDF eBook |
Author | Mr.Sohrab Rafiq |
Publisher | International Monetary Fund |
Pages | 28 |
Release | 2015-11-09 |
Genre | Business & Economics |
ISBN | 151352237X |
This paper explores how monetary policy affects the real economy and its efficacy in promoting financial stability in a large low income country. This paper shows that monetary policy modestly impacts real economic activity and inflation via the bank lending and financial accelerator channels. Second, money market and treasury rates signal changes in the policy stance, while altering banks’ intermediation cost curves due to shifting risk premia. At the same time, evidence points to monetary policy inducing an overshooting in asset prices. These findings suggest that financial stability could be undermined if the calibration of monetary policy is based solely on output and inflation without accounting for the stage of the financial cycle. Finally, the paper discusses policy measures that would enhance the transmission of monetary policy and promote financial stability in Bangladesh.
Monetary Policy Transmission and Financial Stability in a LIC.
Title | Monetary Policy Transmission and Financial Stability in a LIC. PDF eBook |
Author | Sohrab Rafiq |
Publisher | |
Pages | |
Release | 2015 |
Genre | |
ISBN | 9781513581439 |
Monetary Policy and Financial Stability
Title | Monetary Policy and Financial Stability PDF eBook |
Author | Janet Louise Yellen |
Publisher | International Monetary Fund |
Pages | 68 |
Release | 2015-08-28 |
Genre | Business & Economics |
ISBN | 1498344267 |
The issue of using monetary policy for financial stability purposes is hotly contested. The crisis was a reminder that price stability is not sufficient for financial stability, financial crises are costly, and policy should aim to decrease the likelihood of crises, not only rely on dealing with their repercussions once they occur. 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.
Monetary Policy and Financial Stability
Title | Monetary Policy and Financial Stability PDF eBook |
Author | Álvaro Aguirre |
Publisher | |
Pages | |
Release | 2019 |
Genre | |
ISBN | 9789567421619 |
Monetary Policy and Financial Stability
Title | Monetary Policy and Financial Stability PDF eBook |
Author | Alvaro Aguirre Badani |
Publisher | |
Pages | 356 |
Release | 2019 |
Genre | Banks and banking, Central |
ISBN | 9789567421602 |
Monetary Policy and Financial Stability
Title | Monetary Policy and Financial Stability PDF eBook |
Author | Mr.Jeremy Clift |
Publisher | International Monetary Fund |
Pages | 24 |
Release | 2014-10-06 |
Genre | Business & Economics |
ISBN | 1498346510 |
The Inaugural Camdessus Central Banking Lecture
Monetary Policy and Financial Stability in a Banking Economy
Title | Monetary Policy and Financial Stability in a Banking Economy PDF eBook |
Author | |
Publisher | |
Pages | |
Release | 2015 |
Genre | |
ISBN | 9789036783064 |