CENTRAL BANK POLICY AND MACROPRUDENTIAL POLICY IN ENSURING FINANCIAL STABILITY Cover Image
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CENTRAL BANK POLICY AND MACROPRUDENTIAL POLICY IN ENSURING FINANCIAL STABILITY
CENTRAL BANK POLICY AND MACROPRUDENTIAL POLICY IN ENSURING FINANCIAL STABILITY

Author(s): Dragan Miodrag Momirovic, Svetislav J. Stankovič, Milan N. PETKOVIĆ
Subject(s): Economy, Business Economy / Management, Accounting - Business Administration
Published by: ASERS Publishing
Keywords: central banks; macro-prudential policy; financial stability; systemic risk; coordination
Summary/Abstract: The failures of the adopted consensus, before and during the recent crisis, launched a new “post - consensus “that the central bank should expand its mandate and policies of financial stability. Expanding the mandate includes the joint application of central bank policy and macroprudential policy and greater responsibility for ensuring financial stability. A new framework of financial stability is established in practice. Institutionally, the partial integration has been established under the same roof, the Bank of England, with a particular branch of separate macroprudential policy integration within the EU, the establishment of an independent body to ensure financial stability. The joint action of central bank policy and macroprudential policies to ensure financial system stability is ensured coordination and communication. Coordination and communication, both policies will lead to an alignment of goals and setting instruments. At the same time, such behavior will result in the avoidance of conflict between the objectives and activities of the central banks and macroprudential policy.

  • Page Range: 105-122
  • Page Count: 18
  • Publication Year: 2014
  • Language: English