IDEAS home Printed from https://ideas.repec.org/a/aio/fpvfcf/v1y2009i10p78-85.html
   My bibliography  Save this article

The commpliance of price stability, financial stability and financial efficiency

Author

Listed:
  • Marius HERBEI

    (West University of Timisoara)

  • Florin DUMITER

    (West University Vasile Goldis of Arad)

Abstract

The current financial crisis has prompted significant debate around the proper management of monetary policy and its role in preventing financial crises, particularly when they grow to the size of the one we are now seeing in developed economies. That’s why we think that it is very important to look upon the role that central banks play in both price stability and financial stability. It is interesting to note that financial stability has been overlooked for so long, or has been the secondary goal of the of central banks. Some people even though that the only objective of central banks was price stability. However, at their origin, these institutions were created precisely to deal with the financial instability caused by frequent bank runs in the late 19th and early 20th century. Furthermore, the concern of price stability was even institutionalized later on around the world, with the inflation targeting regime being the latest stage of its development.

Suggested Citation

  • Marius HERBEI & Florin DUMITER, 2009. "The commpliance of price stability, financial stability and financial efficiency," Finante - provocarile viitorului (Finance - Challenges of the Future), University of Craiova, Faculty of Economics and Business Administration, vol. 1(10), pages 78-85, December.
    • Handle: RePEc:aio:fpvfcf:v:1:y:2009:i:10:p:78-85
    as

    Download full text from publisher

    File URL: http://feaa.ucv.ro/FPV/010-10.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. William R. White, 2006. "Is price stability enough?," BIS Working Papers 205, Bank for International Settlements.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Q. Akram & Gunnar Bårdsen & Kjersti-Gro Lindquist, 2007. "Pursuing financial stability under an inflation-targeting regime," Annals of Finance, Springer, vol. 3(1), pages 131-153, January.
    2. Kveta Kubatova, 2009. "Issues of tax burden measuring using tax quota," ACTA VSFS, University of Finance and Administration, vol. 3(2), pages 106-115.
    3. Blot, Christophe & Creel, Jérôme & Hubert, Paul & Labondance, Fabien & Saraceno, Francesco, 2015. "Assessing the link between price and financial stability," Journal of Financial Stability, Elsevier, vol. 16(C), pages 71-88.
    4. Casey Pender, 2023. "Is Deflation Cause For Panic? Evidence from the National Banking Era," Carleton Economic Papers 23-04, Carleton University, Department of Economics.
    5. repec:prf:journl:v:4:y:2010:i:1:p:116-123 is not listed on IDEAS
    6. Rodrigo Vergara, 2010. "Monetary Policy after the Crisis: Some Issues Regarding Targets and Instruments," Economic Policy Papers Central Bank of Chile 38, Central Bank of Chile.
    7. Gilles, Philippe & Huchet, Nicolas & Gauvin, Marie-Sophie, 2012. "Politique monétaire, choix de portefeuille du secteur bancaire et canal de la prise de risque," L'Actualité Economique, Société Canadienne de Science Economique, vol. 88(2), pages 175-196, Juin.
    8. Grahame Johnson & Sharon Kozicki & Romanos Priftis & Lena Suchanek & Jonathan Witmer & Jing Yang, 2020. "Implementation and Effectiveness of Extended Monetary Policy Tools: Lessons from the Literature," Discussion Papers 2020-16, Bank of Canada.
    9. repec:hal:wpspec:info:hdl:2441/f6h8764enu2lskk9p4oqi4ibn is not listed on IDEAS
    10. Agnes Benassy-Quere & Jean Pisani-Ferry, 2011. "What International Monetary System for a Fast-Changing World Economy?," Book Chapters, in: Jack T. Boorman & André Icard (ed.), Reform of the International Monetary System: The Palais Royal Initiative, edition 1, chapter 21, pages 255-298, Emerging Markets Forum.
    11. Antonio Forte, 2009. "The pass-through effect: a twofold analysis," EERI Research Paper Series EERI_RP_2009_08, Economics and Econometrics Research Institute (EERI), Brussels.
    12. repec:hal:spmain:info:hdl:2441/53ccj34tat80tq7f6ff0qvvjtj is not listed on IDEAS
    13. Nicolas Cachanosky, 2014. "The Mises-Hayek business cycle theory, fiat currencies and open economies," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 27(3), pages 281-299, September.
    14. Hudepohl, Tom & van Lamoen, Ryan & de Vette, Nander, 2021. "Quantitative easing and exuberance in stock markets: Evidence from the euro area," Journal of International Money and Finance, Elsevier, vol. 118(C).
    15. Charles Bean, 2018. "Central Banking after the Great Recession," Economic Affairs, Wiley Blackwell, vol. 38(1), pages 2-15, February.
    16. Kátay Gábor & Kerdelhué Lisa & Lequien Matthieu, 2020. "Semi-Structural VAR and Unobserved Components Models to Estimate Finance-Neutral Output Gap," Working papers 791, Banque de France.
    17. Miroslav Hrncir, 2009. "Monetary Policy and Central Banking in the Wake of the World Financial Crisis," ACTA VSFS, University of Finance and Administration, vol. 3(2), pages 137-166.
    18. Adam Koronowski, 2010. "Monetary Policy and Financial (In)Stability," Contemporary Economics, University of Economics and Human Sciences in Warsaw., vol. 4(2), June.
    19. Aleh Mazol, 2019. "The Influence of Financial Stress on Economic Activity and Monetary Policy in Belarus," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 44(2), pages 49-75, June.
    20. Sean Joss Gossel & Nicholas Biekpe, 2012. "The effects of capital inflows on South Africa's economy," Applied Financial Economics, Taylor & Francis Journals, vol. 22(11), pages 923-938, June.
    21. repec:spo:wpecon:info:hdl:2441/f6h8764enu2lskk9p4oqi4ibn is not listed on IDEAS
    22. Feldkircher, Martin & Horvath, Roman & Rusnak, Marek, 2014. "Exchange market pressures during the financial crisis: A Bayesian model averaging evidence," Journal of International Money and Finance, Elsevier, vol. 40(C), pages 21-41.
    23. Fouda Owoundi, Jean-Pierre & Mbassi, Christophe Martial & Owoundi, Ferdinand, 2021. "Does inflation targeting weaken financial stability? Assessing the role of institutional quality," The Quarterly Review of Economics and Finance, Elsevier, vol. 80(C), pages 374-398.
    24. Catriona Purfield & Hiroko Oura & Charles Kramer & Andreas Jobst, 2008. "Asian equity markets: growth, opportunities, and challenges," Macroeconomics and Finance in Emerging Market Economies, Taylor & Francis Journals, vol. 1(2), pages 227-248.

    More about this item

    Keywords

    price stability; financial efficiency; the management of monetary policy; central banks policies;
    All these keywords.

    JEL classification:

    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
    • G00 - Financial Economics - - General - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aio:fpvfcf:v:1:y:2009:i:10:p:78-85. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Alina Manta (email available below). General contact details of provider: https://edirc.repec.org/data/fecraro.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.