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Linkages between monetary and regulatory policy: lessons from the crisis

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  • Janet L. Yellen

Abstract

The crisis of the past two years has underscored the connections between monetary policy, which seeks to foster maximum employment and price stability, and regulatory policy, which works to protect the financial system. The two domains can't be regarded as separate. Researchers are currently examining ways in which monetary policy may play a role in managing systemic risk and regulatory policy may serve to promote macroeconomic goals. The following is adapted from a presentation made by the president and CEO of the Federal Reserve Bank of San Francisco to the Institute of Regulation & Risk, North Asia, in Hong Kong on November 17, 2009.

Suggested Citation

  • Janet L. Yellen, 2009. "Linkages between monetary and regulatory policy: lessons from the crisis," FRBSF Economic Letter, Federal Reserve Bank of San Francisco, issue nov23.
    • Handle: RePEc:fip:fedfel:y:2009:i:nov23:n:2009-36
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    References listed on IDEAS

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    1. Tobias Adrian & Hyun Song Shin, 2009. "Money, Liquidity, and Monetary Policy," American Economic Review, American Economic Association, vol. 99(2), pages 600-605, May.
    2. Jeffrey C. Fuhrer & Eileen Mauskopf & Peter A. Tinsley, 1990. "The transmission channels of monetary policy: how have they changed?," Federal Reserve Bulletin, Board of Governors of the Federal Reserve System (U.S.), issue Dec, pages 985-1008.
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    1. Diamandis, Panayiotis F. & Drakos, Anastassios A. & Kouretas, Georgios P. & Zarangas, Leonidas, 2011. "Value-at-risk for long and short trading positions: Evidence from developed and emerging equity markets," International Review of Financial Analysis, Elsevier, vol. 20(3), pages 165-176, June.
    2. Simon H. Kwan, 2009. "Capital structure in banking," FRBSF Economic Letter, Federal Reserve Bank of San Francisco, issue dec7.

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