Arbeitspapier
Monetary policy, financial regulation and financial stability: A comparison between the Fed and the ECB
The paper analyses in light of Austrian and Keynesian economic theory the impact of conventional and unconventional monetary policies as therapies for financial crises. It compares the financial market stabilization measures of the Federal Reserve System and the European System of Central Banks in response to the US subprime crisis and the European financial and debt crisis. It is shown that the Federal Reserve System's crisis measures were more directed towards stabilizing the banking system, whereas the European Central Bank had a stronger focus on the stabilization of the debt affordability of euro area crisis countries. In both cases, household credit growth remained under control despite renewed monetary expansion, while new imbalances emerged in the corporate sector. In the euro area, loose monetary policy had a destabilizing impact on the financial sector.
- Language
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Englisch
- Bibliographic citation
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Series: Working Paper ; No. 166
- Classification
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Wirtschaft
Current Heterodox Approaches: Austrian
General Aggregative Models: Keynes; Keynesian; Post-Keynesian
Austrian; Evolutionary; Institutional
Prices, Business Fluctuations, and Cycles: General (includes Measurement and Data)
Financial Markets and the Macroeconomy
Central Banks and Their Policies
General Financial Markets: General (includes Measurement and Data)
Financial Institutions and Services: General
Fiscal Policies and Behavior of Economic Agents: General
National Government Expenditures and Related Policies: General
- Subject
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Financial cycles
financial crisis
financial stability
Hayek
Keynes
monetarypolicy
- Event
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Geistige Schöpfung
- (who)
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Schnabl, Gunther
Sonnenberg, Nils
- Event
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Veröffentlichung
- (who)
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Universität Leipzig, Wirtschaftswissenschaftliche Fakultät
- (where)
-
Leipzig
- (when)
-
2020
- Handle
- Last update
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10.03.2025, 11:45 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Schnabl, Gunther
- Sonnenberg, Nils
- Universität Leipzig, Wirtschaftswissenschaftliche Fakultät
Time of origin
- 2020
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Exchange Rate Regime, Financial Market Bubbles and Long-Term Growth in China: Lessons from Japan
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International Capital Markets and Informal Dollar Standards in the CIS and East Asia
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