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Uncertain accommodative policies as tools for financial stability: recent developments

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  • Ojo, Marianne
  • Roedl, Marianne

Abstract

The need to address issues pertaining to legal uncertainty, sound governance, public policy considerations – as well as forecasting techniques as a means of mitigating uncertainties in an environment where confidence the inflation target is low, are amongst some of the objectives which this paper aims to address. Innovative possibilities and opportunities of e digital currencies are then considered – particularly growing considerations of certain central banks to issue their own central bank digital currencies. Questions which still need to be addressed relating to the interest rates to be attached to such currencies and whether or not such interest rates should apply. Further considerations relate to whether the inflation targets should be raised. These innovative possibilities are considered – with further recommendations for research – before a conclusion is drawn. This paper constitutes a chapter to the volume “Rethinking Regulation and Monetary Policies”.

Suggested Citation

  • Ojo, Marianne & Roedl, Marianne, 2020. "Uncertain accommodative policies as tools for financial stability: recent developments," MPRA Paper 102231, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:102231
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    References listed on IDEAS

    as
    1. Svensson, Lars E.O., 2017. "Cost-benefit analysis of leaning against the wind," Journal of Monetary Economics, Elsevier, vol. 90(C), pages 193-213.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Leaning Against the Wind Policy; financial stability; monetary policies; interest rates; inflation targeting; stable coins; central banks; regulation; crypto assets;
    All these keywords.

    JEL classification:

    • E43 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Interest Rates: Determination, Term Structure, and Effects
    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • F6 - International Economics - - Economic Impacts of Globalization
    • K20 - Law and Economics - - Regulation and Business Law - - - General

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