Financial stability, monetary policy, banking supervision, and central banking

Arbeitspapier

The paper gives an overview over issues concerning the role of financial stability in monetary policy and the relation between banking supervision and central banking. Following a brief account of developments in the European Monetary Union since its creation, the systematic treatment contains four parts, first a systematic discussion of how a central bank´s operations differ from those of an administrative authority; second, a discussion of how the shift from convertible currencies to paper currencies has affected our understanding of monetary policy and the role of financial stability; third, a discussion of moral hazard in banking and banking supervision as a threat to monetary dominance and to the effective independence of central bank decision making in an environment in which financial stability is an essential precondition for reaching the central bank´s macroeconomic objective, e.g. price stability; finally, a discussion of the challenges for institution design and policy, with special attention to developments in the euro area.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Preprints of the Max Planck Institute for Research on Collective Goods ; No. 2014/9

Classification and Topics

• Classification: Wirtschaft ; General Financial Markets: Government Policy and Regulation ; Financial Institutions and Services: Government Policy and Regulation ; Central Banks and Their Policies ; Financial Markets and the Macroeconomy ; Monetary Systems; Standards; Regimes; Government and the Monetary System; Payment Systems ; Money Supply; Credit; Money Multipliers ; Monetary Policy ; Bankruptcy; Liquidation ; National Debt; Debt Management; Sovereign Debt
• Subject: banking supervision ; financial stability ; monetary policy ; central banking ; bank resolution ; independence of central banks and supervisory authorities

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Hellwig, Martin
• Event: Veröffentlichung
• (who): Max Planck Institute for Research on Collective Goods
• (where): Bonn
• (when): 2014

Further information

• Handle: http://hdl.handle.net/10419/102668
• Last update: 10.03.2025, 11:41 AM CET