Monetary Policy and Banking Stability

Main content

We develop a new policy framework whereby the central bank chooses short-term interest rates and possibly the aggregate equity ratio, while banking supervision, including the determination of bank-specific capital requirements, would be left to separate bank-supervisory authorities. In particular, we are concerned with the following issues:

  • What is an appropriate architecture for money and banking?
  • Should monetary policy and banking supervision be conducted separately?
  • Should monetary policy and macroprudential policy be conducted separately?
  • How akin is inflation targeting to bank equity targeting?
  • How should interest rate, and aggregate bank equity policy be coordinated?
  • How can monetary policy help resolve banking crises?

Publications

  • Capital Regulation and Credit Fluctuations, Journal of Monetary Economics, forthcoming, 2017.
    (Hans Gersbach and Jean-Charles Rochet)
    Working Paper Version
  • A framework for two macro policy instruments: Money and banking combined
    (Hans Gersbach)
    published as CEPR Policy insight No. 58
  • The Workout of Banking Crises: A Macroeconomic Perspective, CESifo Economic Studies, 49, 2003, 233-258.
    (Hans Gersbach and Jan Wenzelburger)
    Working Paper Version

Columns / Policy Briefs

Working Papers

Team Members

Cooperation Partner

 
 
Page URL: http://www.mip.ethz.ch/research/aream/monpolbanking.html
Sat Jul 22 08:02:32 CEST 2017
© 2017 Eidgenössische Technische Hochschule Zürich