Financial Stability and Monetary Policy: Need for International Surveillance

摘要: In this article, we propose a new monetary framework that defines broader set of assets, De Facto Money (DFM), as the benchmark for improving financial stability. DFM is defined traditional aggregates plus other liquid assets such stocks and bonds. Empirical evidence USA, Organisation Economic Co-operation Development countries, few emerging countries lends strong support connection between exceptionally fast growth subsequent instability. We recommend several potential policy instruments to implement framework. Due cross-country spillovers from national crises, suggest international surveillance will be necessary monitor thus underlying conditions stability in major countries. argue International Monetary Fund ideal institution carry out task terms its reputation expertise. Oxford University Press 2010, all rights reserved, Press.