Rediscovering the macroeconomic roots of financial stability policy: journey, challenges and a way forward
Claudio Borio ()
No 354, BIS Working Papers from Bank for International Settlements
The recent financial crisis has triggered a major rethink of analytical approaches and policy towards financial stability. The crisis has encouraged a sharper focus on systemic risk, the inclusion of a financial sector in macroeconomic models, a shift from a microprudential to a macroprudential orientation in regulation and supervision, and questions about whether price stability is a sufficient criterion to guide monetary policy. In the process, it has led to a rediscovery of the macroeconomic roots of financial instability. This paper argues that this development is welcome but has not gone far enough. To substantiate this conclusion, the paper documents this analytical and policy journey before suggesting a way forward.
Keywords: financial (in)stability; systemic risk; capital; liquidity; monetary policy; monetary economy (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (50) Track citations by RSS feed
Downloads: (external link)
http://www.bis.org/publ/work354.pdf Full PDF document (application/pdf)
Journal Article: Rediscovering the Macroeconomic Roots of Financial Stability Policy: Journey, Challenges, and a Way Forward (2011)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:bis:biswps:354
Access Statistics for this paper
More papers in BIS Working Papers from Bank for International Settlements Contact information at EDIRC.
Bibliographic data for series maintained by Christian Beslmeisl ().