Working paper
The Optimal Monetary Instrument for Prudential Purposes.
- Abstract:
- The purpose of this paper is to assess the choice between adopting a monetary base or an interest rate setting instrument to maintain financial stability. Our results suggest that the interest rate instrument is preferable, since during times of a panic or financial crisis the Central Bank automatically satisfies the increased demand for money. Thus, it prevents sharp losses in asset values and enhanced asset volatility.
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- Files:
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(Preview, pdf, 312.3KB, Terms of use)
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Authors
- Publisher:
- Oxford Finance
- Series:
- Financial Economics Working Papers
- Publication date:
- 2008-02-01
- Language:
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English
- UUID:
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uuid:53492cf7-7457-411a-9cdc-c0dbdf1a9a55
- Local pid:
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oai:economics.ouls.ox.ac.uk:14087
- Deposit date:
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2011-08-15
- ARK identifier:
Terms of use
- Copyright date:
- 2008
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