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Central banking post-crisis: What compass for uncharted waters?

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  • Claudio Borio
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    Abstract

    The global financial crisis has shaken the foundations of the deceptively comfortable pre-crisis central banking world. Central banks face a threefold challenge: economic, intellectual and institutional. This essay puts forward a compass to help central banks sail in the largely uncharted waters ahead. The compass is based on tighter integration of the monetary and financial stability functions, keener awareness of the global dimensions of those tasks, and stronger safeguards for an increasingly vulnerable central bank operational independence.

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    Bibliographic Info

    Paper provided by Bank for International Settlements in its series BIS Working Papers with number 353.

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    Length: 23 pages
    Date of creation: Sep 2011
    Date of revision:
    Handle: RePEc:bis:biswps:353

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    Related research

    Keywords: central banking; monetary and financial stability; macroprudential; own-house-in-order doctrine; operational independence;

    This paper has been announced in the following NEP Reports:

    References

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    1. Leonardo Gambacorta, 2009. "Monetary policy and the risk-taking channel," BIS Quarterly Review, Bank for International Settlements, December.
    2. Bernanke, Ben S. & Gertler, Mark & Gilchrist, Simon, 1999. "The financial accelerator in a quantitative business cycle framework," Handbook of Macroeconomics, in: J. B. Taylor & M. Woodford (ed.), Handbook of Macroeconomics, edition 1, volume 1, chapter 21, pages 1341-1393 Elsevier.
    3. Claudio Borio & Bent Vale & Goeth von Peter, 2010. "Resolving the financial crisis: are we heeding the lessons from the Nordics?," BIS Working Papers 311, Bank for International Settlements.
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    Cited by:
    1. Sofiane Aboura & Björn van Roye, 2013. "Financial stress and economic dynamics: an application to France," Kiel Working Papers 1834, Kiel Institute for the World Economy.

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