Tucker, Paul, (2016), “The objectives of financial stability policy”, VoxEU, 28 September
The objective of financial stability policy is unclear. Is it the resilience of the financial system, avoiding the costs of systemic collapse, or managing the credit cycle, containing the costs of resource misallocation and over-indebtedness? This column argues that the answers have serious implications for what can decently be delegated to independent ‘macroprudential authorities’, but have barely been debated in those terms.
Relevant Posts
- Adrian, Tobias, Liang, Nellie, (2016), “Monetary Policy, Financial Conditions, and Financial Stability”,CEPR DP 11394, July
- , Giovanni, , Deniz, , Luc,