Asset Prices, Macroprudential Regulation, and Monetary Policy

Otaviano Canuto and Matheus Cavallari ()
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Matheus Cavallari: World Bank

World Bank - Economic Premise, 2013, issue 116, 1-8

Abstract: Confidence in combining inflation-targeting-cum-flexible-exchange-rate regimes with isolated microprudential regulation as a means to guarantee both macroeconomic and financial stability has been shattered by the scale and synchronization of the asset price booms and busts that preceded the global financial crisis. It has now become clear that if monetary policy makers and prudential regulators are to succeed in achieving stability, there can be no complacency regarding asset price cycles. This note explores some of the ways in which monetary policy can address asset price booms and busts through its integration with macroprudential regulation.

JEL-codes: E0 E3 G2 G3 (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (1)

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Related works:
Working Paper: Asset Prices, Macro Prudential Regulation, and Monetary Policy (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:wbk:prmecp:ep116

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