Arbeitspapier
Financial stability: To regulate or not? A public choice inquiry
The paper takes the stand that the central banks as financial regulators have their own interest in imposing more regulations. It models the institutional behaviour for the central bank and government using the Indirect Inference testing and estimation method as it finds a set of coefficients of the model that can generate the actual observed behaviour for the US. The paper establishes that good monetary policy can reduce instability. Regulation at worse destabilises the economy and at best contributes little to stabilise the economy. After the financial crisis, financial regulations were too severe and thus actually increased instability.
- Language
-
Englisch
- Bibliographic citation
-
Series: Cardiff Economics Working Papers ; No. E2018/4
- Classification
-
Wirtschaft
General Aggregative Models: General
Central Banks and Their Policies
Financial Institutions and Services: Government Policy and Regulation
- Subject
-
DSGE
Regulations
Financial Stability
Monetary Policy
- Event
-
Geistige Schöpfung
- (who)
-
Le, Vo Phuong Mai
Meenagh, David
Minford, Patrick
- Event
-
Veröffentlichung
- (who)
-
Cardiff University, Cardiff Business School
- (where)
-
Cardiff
- (when)
-
2018
- Handle
- Last update
-
10.03.2025, 11:43 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
- Le, Vo Phuong Mai
- Meenagh, David
- Minford, Patrick
- Cardiff University, Cardiff Business School
Time of origin
- 2018
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