Publication: Asset Prices, Macro Prudential Regulation, and Monetary Policy
Date
2013-05
ISSN
Published
2013-05
Author(s)
Abstract
Confidence in combining
inflation-targeting-cum-flexible-exchange-rate regimes with
isolated micro prudential 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 macro prudential regulation.
Citation
“Canuto, Otaviano; Cavallari, Matheus. 2013. Asset Prices, Macro Prudential Regulation, and Monetary Policy. Economic Premise;No. 116. © World Bank, Washington, DC. http://hdl.handle.net/10986/16116 License: CC BY 3.0 IGO.”