This note overviews macroprudential policy options that have been proposed to address the systemic risks experienced during the recent financial crisis. It contributes to the policy debate by providing a taxonomy of macroprudential policies in terms of the specific negative externalities in the...

This note explores the costs and benefits of different policy options to reduce the risks associated with credit booms, drawing upon several country experiences and the findings from econometric analysis.

This paper assesses how various types of financial risk such as credit risk, market risk, and liquidity risk affect banking stability in the ten countries that joined the European Union most recently, and eight neighboring countries. It also examines how the quality of supervisory standards may...

AbstractThe following sections are included:IntroductionThe Central Bank's Legitimacy When It Has a Financial Stability RoleThe political nature of the central bank's financial stability roleThe perceived legitimacy of the Eurosystem as provider of financial stabilityThe Eurosystem's output...

AbstractThe following sections are included:IntroductionFinancial Instability in the 1920sConvoy System to Prevent Bank FailuresBank of Japan After the New Bank of Japan Act of 1998Monetary Policy and Prudential PolicyLessons from the Experiences of the Bank of JapanReferences

AbstractWe have before us in the session three different and yet complementary “takes” on what is meant by the social productivity of the financial sector, and three calls, directly or indirectly, for further research. Ross Levine looks at the ways that finance adds to social welfare by...

AbstractThe following sections are included:The Analysis and ResultsPolicy ImplicationsReferences

AbstractThe following sections are included:IntroductionThe Cause of the Global Financial CrisisCausesFlexible Inflation Targeting (FIT) and BubbleDigression: The Japanese Bubble ExperienceMiddle Ground: Should the Central Bank Target Asset Prices?Collecting and Calculating Housing Price...

AbstractThe following sections are included:Eurozone in Balance Sheet RecessionDestabilizing Intra-Eurozone Capital FlowsAn Endgame SolutionNavigating the Transition PeriodECB Could Buy More Government Bonds to Counter Lender-Side ProblemsConclusionReference