Central Banking, Asset Prices and Financial Fragility

Nonfiction, Social & Cultural Studies, Political Science, Politics, Economic Conditions, Business & Finance, Economics
Cover of the book Central Banking, Asset Prices and Financial Fragility by Éric Tymoigne, Taylor and Francis
View on Amazon View on AbeBooks View on Kobo View on B.Depository View on eBay View on Walmart
Author: Éric Tymoigne ISBN: 9781135976729
Publisher: Taylor and Francis Publication: November 21, 2008
Imprint: Routledge Language: English
Author: Éric Tymoigne
ISBN: 9781135976729
Publisher: Taylor and Francis
Publication: November 21, 2008
Imprint: Routledge
Language: English

The current literature on central banking contains two distinct branches. On the one side, research focuses on the impact of monetary policy on economic growth, unemployment, and output-price inflation, while ignoring financial aspects. On the other side, some scholars leave aside macroeconomics in order to study the narrow, but crucial, subjects of financial behaviours, and financial supervision and regulation. This book aims at merging both approaches by using macroeconomic analysis to show that financial considerations should be the main preoccupation of central banks. Eric Tymoigne shows how different views regarding the conception of asset pricing lead to different positions regarding the appropriate role of a central bank in the economy. In addition, Hyman P. Minsky’s framework of analysis is used extensively and is combined with other elements of the Post Keynesian framework to study the role of a central bank.

Tymoigne argues that central banks should be included in a broad policy strategy that aims at achieving stable full employment. Their sole goal should be to promote financial stability, which is the best way they can contribute to price stability and full employment. Central banks should stop moving their policy rate frequently and widely because that creates inflation, speculation, and economic instability. Instead, Tymoigne considers a pro-active financial policy that does not allow financial innovations to enter the economy until they are certified to be safe and that focuses on analyzing systemic risk. He argues that central banks should be a guide and a reformer that allow a smooth financing and funding of asset positions, while making sure that financial fragility does not increase drastically over a period of expansion.

This book will be of interest to students and researchers engaged with central banking, macroeconomics, asset pricing and monetary economics.

View on Amazon View on AbeBooks View on Kobo View on B.Depository View on eBay View on Walmart

The current literature on central banking contains two distinct branches. On the one side, research focuses on the impact of monetary policy on economic growth, unemployment, and output-price inflation, while ignoring financial aspects. On the other side, some scholars leave aside macroeconomics in order to study the narrow, but crucial, subjects of financial behaviours, and financial supervision and regulation. This book aims at merging both approaches by using macroeconomic analysis to show that financial considerations should be the main preoccupation of central banks. Eric Tymoigne shows how different views regarding the conception of asset pricing lead to different positions regarding the appropriate role of a central bank in the economy. In addition, Hyman P. Minsky’s framework of analysis is used extensively and is combined with other elements of the Post Keynesian framework to study the role of a central bank.

Tymoigne argues that central banks should be included in a broad policy strategy that aims at achieving stable full employment. Their sole goal should be to promote financial stability, which is the best way they can contribute to price stability and full employment. Central banks should stop moving their policy rate frequently and widely because that creates inflation, speculation, and economic instability. Instead, Tymoigne considers a pro-active financial policy that does not allow financial innovations to enter the economy until they are certified to be safe and that focuses on analyzing systemic risk. He argues that central banks should be a guide and a reformer that allow a smooth financing and funding of asset positions, while making sure that financial fragility does not increase drastically over a period of expansion.

This book will be of interest to students and researchers engaged with central banking, macroeconomics, asset pricing and monetary economics.

More books from Taylor and Francis

Cover of the book The Regional Dimension of Transformation in Central Europe by Éric Tymoigne
Cover of the book The Manual of Photography and Digital Imaging by Éric Tymoigne
Cover of the book Coming to Narrative by Éric Tymoigne
Cover of the book EU Rule of Law Promotion by Éric Tymoigne
Cover of the book The Origins of Higher Learning by Éric Tymoigne
Cover of the book Development According to Parents by Éric Tymoigne
Cover of the book Heroines of Sport by Éric Tymoigne
Cover of the book Classroom Management From the Ground Up by Éric Tymoigne
Cover of the book Chinese Firms, Global Firms by Éric Tymoigne
Cover of the book Pedagogies of the Global by Éric Tymoigne
Cover of the book Obama and Race by Éric Tymoigne
Cover of the book Multilateral Security and ESDP Operations by Éric Tymoigne
Cover of the book Adlerian Counseling and Psychotherapy by Éric Tymoigne
Cover of the book Translation in a Postcolonial Context by Éric Tymoigne
Cover of the book Statistical Concepts - A Second Course by Éric Tymoigne
We use our own "cookies" and third party cookies to improve services and to see statistical information. By using this website, you agree to our Privacy Policy