Goodhart, C.A.E.; Sunirand, P.; Tsomocos, D.P. - In: Journal of Financial Stability 7 (2011) 2, pp. 70-77
The purpose of this paper is to assess the choice between adopting a monetary base or an interest rate setting instrument to maintain financial stability. Our results suggest that the interest rate instrument is preferable, since during times of a panic or financial crisis the Central Bank...