The Role of Central Banks in Sustaining Economic Recovery and in Achieving Financial Stability

Reza Siregar and Vincent Lim

MPRA Paper from University Library of Munich, Germany

Abstract: Whenever a financial crisis occurs, threatening a possible financial meltdown, central banks have to be at the forefront in combating, neutralizing the crisis and restoring financial stability and economic growth. In this regards, the present sub-prime crisis which originated from the US highlights a few key issues for the Southeast Asian Central banks (SEACEN). This paper reviews the policy responses to the crisis which include exit policy strategies from stimulus monetary packages. To strengthen the soundness of the financial system, going forward, the paper also highlights counter-cyclical and macro-prudential regulations that central banks may want to actively look into. These include cross-border policy cooperation and coordination, particularly in the form of the college of supervisors.

Keywords: - SEACEN; -Central Banks; - Financial Stability; - Prudential Regulation; -Supervision. (search for similar items in EconPapers)
JEL-codes: E41 E44 E58 (search for similar items in EconPapers)
Date: 2010-02-15
New Economics Papers: this item is included in nep-ban, nep-cba, nep-mac, nep-mon, nep-reg and nep-sea
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (16)

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Related works:
Book: The Role of Central Banks in Sustaining Economic Recovery and in Achieving Financial Stability (2010)
Journal Article: The Role of Central Banks in Sustaining Economic Recovery and in Achieving Financial Stability (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:20846

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