Macroeconomic and financial stability: challenges for monetary policy

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Date

2014

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Publisher

Banco Central de Chile

Abstract

Description

On September 2008, Lehman Brothers filed for bankruptcy and the world became aware that the financial crisis that had been unfolding for months was far more serious than expected. Months later, it became clear that the financial crisis of 2008-2009 was the worst economic downturn since the Great Depression of the 1930s. The crisis not only brought the global financial system to the brink of disaster, but also shook the existing consensus regarding the appropriate conduct of monetary policy and macroeconomic stabilization. This volume provides a comprehensive study on the interaction between economic policy and macroeconomic and financial stability. It collects thirteen contributions by leading experts in the field of macroeconomics discussing the lessons left by the financial crisis for the conduct of monetary policy, the role of monetary policy in the buildup of a financial crisis, the role of monetary and macro-prudential policies in preventing a financial crisis and the policies that can aid the economy in the path to recovery from a financial crisis.

Keywords

MACROECONOMÍA, MONETARY POLICY, ESTABILIDAD ECONÓMICA, CRISIS ECONÓMICA, 2008-2009

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