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The link between monetary policy and asset price movements has been of perennial interest to policymakers. In this paper, we consider the potential case for preemptive monetary restrictions when asset price reversals can have serious effects on real output. First, we present some stylized facts...
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One of the world’s foremost economic historians explains the forces behind the development of modern central banks, providing insight into their role in the financial system and the economy.
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The global financial crisis (GFC) of 2007-2008 led to a call for central banks to elevate their financial stability mandate to the same level as their price stability mandate. It also led to a call for central banks to use their monetary policy tools as well as the tools of macro prudential...
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