Cavallari, MatheusCanuto, Otaviano2013-10-102013-10-102013-05https://hdl.handle.net/10986/16116Confidence 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.en-USCC BY 3.0 IGOACCOUNTABILITYACCOUNTINGACCUMULATION OF RESERVESAGGREGATE DEMANDARBITRAGEASSET PRICEASSET PRICE BOOMSASSET PRICESASSETSASYMMETRIC INFORMATIONBALANCE SHEETBALANCE SHEETSBANK FOR INTERNATIONAL SETTLEMENTSBANKING CRISESBANKING CRISISBANKING SUPERVISIONBANKING SYSTEMBANKING SYSTEMSBONDSBORROWERBUFFERBUFFERSBUSINESS CYCLESCAPITAL ACCOUNTCAPITAL ADEQUACYCAPITAL CONTROLSCAPITAL FLOWCAPITAL FLOWSCAPITAL INFLOWCAPITAL INFLOWSCAPITAL RATIOSCAPITAL STANDARDSCAPITALIZATIONCASH TRANSFERSCENTRAL BANKCENTRAL BANKINGCENTRAL BANKSCOLLATERALCONSOLIDATIONCORNER SOLUTIONCORNER SOLUTIONSCREDIT EXPANSIONCREDIT GROWTHCREDIT LINECREDIT SPREADSCROSS-BORDER CAPITALCURRENCYCURRENCY MISMATCHESCURRENT ACCOUNTCURRENT ACCOUNT BALANCESCURRENT ACCOUNT SURPLUSDEBTDEPOSITORSDEVELOPING COUNTRIESDEVELOPMENT ECONOMICSDISCRETIONARY MONETARY POLICYDISEQUILIBRIUMDISINTERMEDIATIONDISTORTIONSDOMESTIC CREDITDOMESTIC CREDIT GROWTHECONOMIC ENVIRONMENTECONOMIC OUTLOOKECONOMIC RESEARCHELASTICITYEMERGING ECONOMIESEMERGING MARKETSEQUILIBRIUMEQUILIBRIUM VALUEEQUITIESEXCHANGE RATEEXCHANGE RATE APPRECIATIONEXCHANGE RATE FLEXIBILITYEXCHANGE RATE FLUCTUATIONSEXCHANGE RATE INTERVENTIONSEXCHANGE RATE MANAGEMENTEXCHANGE RATE REGIMEEXCHANGE RATE REGIMESEXCHANGE RATESEXCHANGE-RATEEXOGENOUS SHOCKSEXPOSUREEXTERNALITIESFINANCIAL CRISESFINANCIAL CRISISFINANCIAL DEVELOPMENTSFINANCIAL INSTABILITYFINANCIAL INSTITUTIONSFINANCIAL INTERMEDIATIONFINANCIAL MARKETFINANCIAL MARKETSFINANCIAL REGULATIONFINANCIAL SECTORFINANCIAL SERVICESFINANCIAL STABILITYFINANCIAL SYSTEMSFINANCIAL VULNERABILITIESFISCAL IMBALANCEFISCAL POLICYFLEXIBLE EXCHANGE RATESFOREIGN CAPITALFOREIGN CURRENCYFUNGIBLEGDPGLOBAL BANKINGGLOBAL FINANCIAL SYSTEMGLOBALIZATIONGROSS DOMESTIC PRODUCTHOUSINGHUMAN CAPITALIMBALANCESINCENTIVE STRUCTUREINDIVIDUAL FIRMSINFLATIONINFLATION TARGETINGINFLOWS OF CAPITALINSTRUMENTINTEREST RATEINTEREST RATE HIKESINTERNATIONAL ECONOMIC POLICYINTERNATIONAL FINANCIAL INSTITUTIONSINTERNATIONAL SETTLEMENTSLEADING INDICATORSLEVERAGELIQUIDITYLIQUIDITY REQUIREMENTSLIQUIDITY RISKSLOANLONG-TERM EQUILIBRIUMMACROECONOMIC EFFECTSMACROECONOMIC FLUCTUATIONSMACROECONOMIC MODELMACROECONOMIC POLICIESMACROECONOMIC POLICYMACROECONOMIC STABILITYMARKET EUPHORIAMARKET FAILURESMARKET TRENDSMATURITYMINIMUM CAPITAL REQUIREMENTMINIMUM CAPITAL REQUIREMENTSMONETARY AUTONOMYMONETARY FUNDMONETARY POLICIESMONETARY POLICYMONETARY POLICY DECISIONSMONETARY TRANSMISSIONMONETARY TRANSMISSION MECHANISMSNATIONAL ECONOMIESNATURAL RESOURCESNEGATIVE EXTERNALITIESNET CAPITALOPTIMIZATIONOUTPUTOUTPUT GAPOUTPUT GAPSPERMANENT SHOCKSPOLICY RESPONSESPORTFOLIOPORTFOLIOSPOVERTY REDUCTIONPRICE FLUCTUATIONSPRICE VOLATILITYPROBABILITY OF DEFAULTPRODUCTIVITYPROVISIONING RULESPRUDENTIAL REGULATIONREAL ESTATEREAL EXCHANGE RATESREGULATORSREGULATORY FRAMEWORKREGULATORY REFORMSREGULATORY STANDARDSRESERVERESERVE REQUIREMENTSRISK MANAGEMENTRISK MEASUREMENTRISK TAKINGSHORT-TERM INTEREST RATESHORT-TERM INTEREST RATESSIDE EFFECTSSOCIAL COSTSSTABLE INFLATIONSTRUCTURAL SHOCKSSURCHARGESSYSTEMIC RISKTEMPORARY CAPITAL INFLOWSTERMS OF CAPITALTRANSACTIONTRANSACTION COSTSTRANSMISSION MECHANISMSUNCERTAINTYYIELD CURVEWorld Bank10.1596/16116