IDEAS home Printed from https://ideas.repec.org/p/fmg/fmgsps/sp173.html
   My bibliography  Save this paper

Analysis of Financial Stability

Author

Listed:
  • Charles Goodhart
  • Dimitrios Tsomocos

Abstract

On the macro-economic policy side of Central Banking a remarkable consensus has been emerging over the last two decades. This covers both the applicable theoretical framework for analysing the transmission mechanism of monetary policy and also the appropriate institutional structure for the Central Bank to deploy its macro-economic policies. The consensus about the latter structure generally involves a high degree of operational independence (from Government); the de facto selection of price stability as the primary objective, (except in those countries on a pegged, or fixed exchange rate, or in a currency union); and a choice of a short term interest rate, selected on pre-announced dates within the context of a forward-looking forecasting structure, as the main instrument.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Charles Goodhart & Dimitrios Tsomocos, 2007. "Analysis of Financial Stability," FMG Special Papers sp173, Financial Markets Group.
    • Handle: RePEc:fmg:fmgsps:sp173
    as

    Download full text from publisher

    File URL: http://www.lse.ac.uk/fmg/documents/specialPapers/2007/sp173.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Romar Correa, 2008. "Heterodox Macroeconomics and the Design of Monetary Institutions," Working Papers id:1721, eSocialSciences.
    2. Marco Sorge, 2004. "Stress-testing financial systems: an overview of current methodologies," BIS Working Papers 165, Bank for International Settlements.
    3. Dietrich Domanski & Philip Turner, 2011. "The Great Liquidity Freeze : What Does It Mean for International Banking?," Finance Working Papers 23245, East Asian Bureau of Economic Research.
    4. Bluhm, Marcel & Krahnen, Jan Pieter, 2011. "Default risk in an interconnected banking system with endogeneous asset markets," CFS Working Paper Series 2011/19, Center for Financial Studies (CFS).
    5. Charles Freedman & Clyde Goodlet, 2007. "Financial Stability: What It Is and Why It Matters," C.D. Howe Institute Commentary, C.D. Howe Institute, issue 256, November.
    6. Jacques Sapir, 2017. "The relationship between monetary policy and economic development in modern Europe: Problems and possible solutions," Studies on Russian Economic Development, Springer, vol. 28(5), pages 467-471, September.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:fmg:fmgsps:sp173. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: The FMG Administration (email available below). General contact details of provider: http://www.lse.ac.uk/fmg/ .

    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.