Central Bank Independence and Macro-Prudential Regulation

Central Bank Independence and Macro-Prudential Regulation
Author: Mr.Kenichi Ueda
Publisher: International Monetary Fund
Total Pages: 27
Release: 2012-04-01
Genre: Business & Economics
ISBN: 1475502915

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We consider the optimality of various institutional arrangements for agencies that conduct macro-prudential regulation and monetary policy. When a central bank is in charge of price and financial stability, a new time inconsistency problem may arise. Ex-ante, the central bank chooses the socially optimal level of inflation. Ex-post, however, the central bank chooses inflation above the social optimum to reduce the real value of private debt. This inefficient outcome arises when macro-prudential policies cannot be adjusted as frequently as monetary. Importantly, this result arises even when the central bank is politically independent. We then consider the role of political pressures in the spirit of Barro and Gordon (1983). We show that if either the macro-prudential regulator or the central bank (or both) are not politically independent, separation of price and financial stability objectives does not deliver the social optimum.


Central Bank Independence and Macro-Prudential Regulation
Language: en
Pages: 27
Authors: Mr.Kenichi Ueda
Categories: Business & Economics
Type: BOOK - Published: 2012-04-01 - Publisher: International Monetary Fund

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We consider the optimality of various institutional arrangements for agencies that conduct macro-prudential regulation and monetary policy. When a central bank
Macroprudential Policy - An Organizing Framework - Background Paper
Language: en
Pages: 33
Authors: International Monetary Fund. Monetary and Capital Markets Department
Categories: Business & Economics
Type: BOOK - Published: 2011-03-14 - Publisher: International Monetary Fund

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MCM conducted a survey in December 2010 to take stock of international experiences with financial stability and the evolving macroprudential policy framework. T
Handbook of Central Banking, Financial Regulation and Supervision
Language: en
Pages: 673
Authors: S. Eijffinger
Categories: Business & Economics
Type: BOOK - Published: 2011-01-01 - Publisher: Edward Elgar Publishing

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ÔThis Handbook is a must read for policy makers and practitioners alike as well as excellent reading for advanced academic courses in international banking.Õ
Macroprudential Policy - An Organizing Framework
Language: en
Pages: 60
Authors: International Monetary Fund. Monetary and Capital Markets Department
Categories: Business & Economics
Type: BOOK - Published: 2011-03-14 - Publisher: International Monetary Fund

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Macroprudential policy is a complement to microprudential policy and it interacts with other types of public policy that have an impact on systemic financial st
Central Bank Independence, Policies and Reforms
Language: en
Pages: 1
Authors: Marianne Ojo D Delaney PhD
Categories:
Type: BOOK - Published: 2016 - Publisher:

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Whilst economic, political linkages and relationships constitute the theme of this paper, the paper also attempts to address why central bank independence still