The Role of Central Banks in Financial Stability : How Has It Changed‪?‬

The two most topical issues in current financial markets deal with the causes of the recent financial crisis and the means to prevent future crises. This book addresses the latter and stresses a major shift in most countries toward a better understanding of financial stability and how it can be achieved. In particular, the papers in this volume examine the recent change in emphasis at central banks with regard to financial stability. For example: What were the cross-country differences in emphasis on financial stability in the past? Did these differences appear to affect the extent of the adverse impact of the financial crisis on individual countries? What are perceived to be the major future threats to financial stability? These and related issues are discussed in the book by well-known experts in the field — some of the best minds in the world pursuing financial stability. Following the global financial crisis, significant reforms have been initiated in many countries to address financial stability more directly, frequently focusing on macroprudential policy frameworks in which central banks play a more active role.Sample Chapter(s)The (Changing) Role of Central Banks in Financial Stability Policies (51 KB)Contents:Special Addresses:The (Changing) Role of Central Banks in Financial Stability Policies (Peter Praet)The Role of Central Banks in Financial Stability: How Has It Changed? (Willem H Buiter)Pursuing Financial Stability at the Federal Reserve (Janet L Yellen)The Role of Central Banks in Financial Stability: Historical Review and Critique:Financial Stability: Lessons Learned from the Recent Crisis and Implications for the Federal Reserve (Nellie Liang)Role of Central Banks in Financial Stability: Lessons from the Experience of the Bank of Japan (Takeo Hoshi)Overcoming the Fear of Free Falling: Monetary Policy Graduation in Emerging Markets (Carlos A Vegh and Guillermo Vuletin)Can We Identify the Financial Cycle? (Mathias Drehmann, Claudio Borio and Kostas Tsatsaronis)Central Banks and Asset Price Bubbles:Low Interest Rates and Housing Bubbles: Still No Smoking Gun (Kenneth N Kuttner)Classic FIT and Lean FIT: Is Inflation-Targeting Guilty of Causing the Financial Instability of 2007–2009? (Takatoshi Ito)Current, Past, and Potential Future Threats to Financial Stability:Bank Capital Regulations: Learning the Right Lessons from the Crisis (Asli Demirgüç-Kunt)International Monetary Reform: Exchange Rates or Interest Rates? (Ronald McKinnon)Threats to Financial Stability in Emerging Markets: The New and Very Active Role of Central Banks (Liliana Rojas-Suarez)The Social Productivity of the Financial Sector:In Defense of Wall Street: The Social Productivity of the Financial System (Ross Levine)Output Growth Variability: The Role of Financial Markets (Alexander Popov)Occupying the Wrong Street? The Social Productivity of the Financial Sector: Some Comments (Gerard Caprio, Jr.)Open Issues in the Regulatory Debate: Failure Resolutions, Bailouts, Moral Hazard, and Market Discipline:Bankers and Brokers First: Loose Ends in the Theory of Central Bank Policymaking (Edward J Kane)The Elusive Scale Economies of the Largest Banks and Their Implications for Global Competitiveness (Joseph P Hughes)The Ex Ante versus Ex Post Effect of Public Guarantees (Evren Damar, Reint Gropp and Adi Mordel)Real and Imaginary Resolution Options for Large Financial Institutions (David A Skeel, Jr.)Policy Panel: Where to from Here?:Is Our Economy's Financial Sector Worth What It Costs Us? (Benjamin M Friedman)The Eurozone Crisis: Causes, Remedy, and Misperceptions (Richard C Koo)Macroprudential and Monetary Policies (Frederic S Mishkin)The Eurozone Crisis (Richard Portes)The Way Forward — Central Banks with Financial Stability Mandates: The Case of the Eurosystem (Anne Sibert)Readership: Undergraduate/graduate students, researchers, and academics in international finance and banking; financial regulators,...