On September 3-4, 2009 SUERF and Utrecht University School of Economicsorganized the Colloquium "The Quest for Stability" in Utrecht, the Netherlands. The papers included in this SUERF Study are based on contributions to the Colloquium.

What are the quantitative macroeconomic effects of the countercyclical capital buffer (CCyB)? I study this question in a nonlinear DSGE model with occasional financial crises, which is calibrated and combined with US data to estimate sequences of structural shocks. Raising capital buffers during...

Credible analyses and evidence submitted by experts from universities, international organizations and independent think tanks show that the trends which led to the 2008 worldwide financial crisis remain intact. As a result, central for responsible leaderships should be the concern how to...

COVID-19 has caused an increased demand for safe assets, causing capital to flow out of emerging and developing market economies, while higher credit spreads and a weaker exchange rate have caused a spike in inflation. This paper analyses the fallout to the real economy and fiscal measures...

Since the decline in world oil prices that began in July 2014, the macroeconomic fundamentals of the CEMAC countries have deteriorated, notably the balance of payments. The degradation of the current balances is likely to extend downwards; raising concerns about the stability of the exchange...

Central banks repo market operations and liquidity infusions occasion a structural liquidity mismatch in bank balance sheets and increase the dependence on central bank liquidity. This paper argues for what I term “Circular Monetary Economics”, an approach to monetary policy that seeks to...

Deteriorating economic conditions in late 2008 led the Federal Reserve to lower the target federal funds rate to near zero, inject liquidity into the financial system through novel facilities, and engage in large scale asset purchases. The combination of conventional and unconventional policy...

This paper arms central bank policy makers with ways to think about interactions between financial stability and monetary policy. We frame the issue of whether to integrate financial stability into monetary policy operating rules by appealing to the observation that in actual economies financial...

The severe impacts of the global financial crisis had effects on all world. However, in Sudan scientists and researchers were greatly shocked because of the governmental camouflaging on their real effects on the economy. Minister of National Economy and Finance denied the effects on the Sudanese...

I study a two-country version of the banking model with financial markets developed in Allen and Gale (2004). Similar to their model, two types of banks arise endogenously in an autarkic economy: some always remain solvent and others can default. When the financial markets are integrated, three...