Monetary policy and financial stability: transmission mechanisms and policy implications
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Date
2019
Authors
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Publisher
Banco Central de Chile
Abstract
Description
The global financial crisis that broke out 10 years ago uncovered the buildup of risks during a period of price and output stability. It challenged the previous consensus that preserving price stability was the optimal way to ensure financial stability, and led to a surge of interest in the multiple interactions between monetary policy frameworks, financial vulnerabilities and financial stability. This volume contributes to the study of these issues as well as the convenience of incorporating financial stability considerations in monetary policy frameworks, bringing together a multinational group of distinguished scholars to discuss the latest research findings. It is of utmost importance to understand how monetary policy affects both financial conditions and financial vulnerabilities that amplify negative shocks, as well as the potential intertemporal policy trade-off between improving current conditions and exacerbating future financial vulnerabilities.
Keywords
POLÍTICA MONETARIA, ESTABILIDAD ECONÓMICA, BANCOS CENTRALES, CONTROL DE PRECIOS