Monetary Policy and Macroprudential Regulation : Whither Emerging Markets
Confidence in combining inflation-targeting-cum-flexible-exchange-rate regimes with isolated microprudential regulation as a means to guarantee both macroeconomic and financial stability has been shattered by the scale and synchronization of asset...
| Main Authors: | , |
|---|---|
| Format: | Policy Research Working Paper |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2013
|
| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2013/01/17158685/monetary-policy-macroprudential-regulation-whither-emerging-markets http://hdl.handle.net/10986/12175 |
| Summary: | Confidence in combining
inflation-targeting-cum-flexible-exchange-rate regimes with
isolated microprudential regulation as a means to guarantee
both macroeconomic and financial stability has been
shattered by the scale and synchronization of asset price
booms and busts that preceded the current global financial
crisis. This paper has a two-fold purpose. On the one hand,
it explores the implications and challenges of acknowledging
the need for coordination between monetary policies and
macroprudential regulation. On the other, it points out
specific challenges currently faced by central bankers in
emerging economies, as they cope with policy and regulatory
coordination in a context of debt overhang and
unconventional monetary policies in advanced economies. |
|---|