Monetary Policy and Banking Stability

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

• A framework for two macro policy instruments: Money and banking combined
  (Hans Gersbach)
  published as DownloadCEPR Policy insight No. 58vertical_align_bottom
  
• The Workout of Banking Crises: A Macroeconomic Perspective, CESifo Economic Studies, 49, 2003, 233-258.
  (Hans Gersbach and Jan Wenzelburger)
  external pageWorking Paper Versioncall_made

Columns / Policy Briefs

Working Papers

• external pageMonetary Policy with a Central Bank Digital Currency: The Short and the Long Termcall_made
  (Florian Böser and Hans Gersbach)
• DownloadModeling Two Macro Policy Instruments Interest Rates and Aggregate Capital Requirementsvertical_align_bottom
  (Hans Gersbach and Volker Hahn)

Team Members

• Hans Gersbach
• Hugo van Buggenum
• Sebastian Zelzner
• Markus Althanns

Cooperation Partner

• external pageVolker Hahncall_made (University of Konstanz)