Asset Prices, Macro Prudential Regulation, and Monetary Policy

Confidence in combining inflation-targeting-cum-flexible-exchange-rate regimes with isolated micro prudential regulation as a means to guarantee both macroeconomic and financial stability has been shattered by the scale and synchronization of the a...

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Bibliographic Details
Main Authors: Canuto, Otaviano, Cavallari, Matheus
Format: Brief
Language:English
en_US
Published: World Bank, Washington, DC 2013
Subjects:
GDP
Online Access:http://documents.worldbank.org/curated/en/2013/05/17688951/asset-prices-macro-prudential-regulation-monetary-policy
http://hdl.handle.net/10986/16116
id okr-10986-16116
recordtype oai_dc
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
en_US
topic ACCOUNTABILITY
ACCOUNTING
ACCUMULATION OF RESERVES
AGGREGATE DEMAND
ARBITRAGE
ASSET PRICE
ASSET PRICE BOOMS
ASSET PRICES
ASSETS
ASYMMETRIC INFORMATION
BALANCE SHEET
BALANCE SHEETS
BANK FOR INTERNATIONAL SETTLEMENTS
BANKING CRISES
BANKING CRISIS
BANKING SUPERVISION
BANKING SYSTEM
BANKING SYSTEMS
BONDS
BORROWER
BUFFER
BUFFERS
BUSINESS CYCLES
CAPITAL ACCOUNT
CAPITAL ADEQUACY
CAPITAL CONTROLS
CAPITAL FLOW
CAPITAL FLOWS
CAPITAL INFLOW
CAPITAL INFLOWS
CAPITAL RATIOS
CAPITAL STANDARDS
CAPITALIZATION
CASH TRANSFERS
CENTRAL BANK
CENTRAL BANKING
CENTRAL BANKS
COLLATERAL
CONSOLIDATION
CORNER SOLUTION
CORNER SOLUTIONS
CREDIT EXPANSION
CREDIT GROWTH
CREDIT LINE
CREDIT SPREADS
CROSS-BORDER CAPITAL
CURRENCY
CURRENCY MISMATCHES
CURRENT ACCOUNT
CURRENT ACCOUNT BALANCES
CURRENT ACCOUNT SURPLUS
DEBT
DEPOSITORS
DEVELOPING COUNTRIES
DEVELOPMENT ECONOMICS
DISCRETIONARY MONETARY POLICY
DISEQUILIBRIUM
DISINTERMEDIATION
DISTORTIONS
DOMESTIC CREDIT
DOMESTIC CREDIT GROWTH
ECONOMIC ENVIRONMENT
ECONOMIC OUTLOOK
ECONOMIC RESEARCH
ELASTICITY
EMERGING ECONOMIES
EMERGING MARKETS
EQUILIBRIUM
EQUILIBRIUM VALUE
EQUITIES
EXCHANGE RATE
EXCHANGE RATE APPRECIATION
EXCHANGE RATE FLEXIBILITY
EXCHANGE RATE FLUCTUATIONS
EXCHANGE RATE INTERVENTIONS
EXCHANGE RATE MANAGEMENT
EXCHANGE RATE REGIME
EXCHANGE RATE REGIMES
EXCHANGE RATES
EXCHANGE-RATE
EXOGENOUS SHOCKS
EXPOSURE
EXTERNALITIES
FINANCIAL CRISES
FINANCIAL CRISIS
FINANCIAL DEVELOPMENTS
FINANCIAL INSTABILITY
FINANCIAL INSTITUTIONS
FINANCIAL INTERMEDIATION
FINANCIAL MARKET
FINANCIAL MARKETS
FINANCIAL REGULATION
FINANCIAL SECTOR
FINANCIAL SERVICES
FINANCIAL STABILITY
FINANCIAL SYSTEMS
FINANCIAL VULNERABILITIES
FISCAL IMBALANCE
FISCAL POLICY
FLEXIBLE EXCHANGE RATES
FOREIGN CAPITAL
FOREIGN CURRENCY
FUNGIBLE
GDP
GLOBAL BANKING
GLOBAL FINANCIAL SYSTEM
GLOBALIZATION
GROSS DOMESTIC PRODUCT
HOUSING
HUMAN CAPITAL
IMBALANCES
INCENTIVE STRUCTURE
INDIVIDUAL FIRMS
INFLATION
INFLATION TARGETING
INFLOWS OF CAPITAL
INSTRUMENT
INTEREST RATE
INTEREST RATE HIKES
INTERNATIONAL ECONOMIC POLICY
INTERNATIONAL FINANCIAL INSTITUTIONS
INTERNATIONAL SETTLEMENTS
LEADING INDICATORS
LEVERAGE
LIQUIDITY
LIQUIDITY REQUIREMENTS
LIQUIDITY RISKS
LOAN
LONG-TERM EQUILIBRIUM
MACROECONOMIC EFFECTS
MACROECONOMIC FLUCTUATIONS
MACROECONOMIC MODEL
MACROECONOMIC POLICIES
MACROECONOMIC POLICY
MACROECONOMIC STABILITY
MARKET EUPHORIA
MARKET FAILURES
MARKET TRENDS
MATURITY
MINIMUM CAPITAL REQUIREMENT
MINIMUM CAPITAL REQUIREMENTS
MONETARY AUTONOMY
MONETARY FUND
MONETARY POLICIES
MONETARY POLICY
MONETARY POLICY DECISIONS
MONETARY TRANSMISSION
MONETARY TRANSMISSION MECHANISMS
NATIONAL ECONOMIES
NATURAL RESOURCES
NEGATIVE EXTERNALITIES
NET CAPITAL
OPTIMIZATION
OUTPUT
OUTPUT GAP
OUTPUT GAPS
PERMANENT SHOCKS
POLICY RESPONSES
PORTFOLIO
PORTFOLIOS
POVERTY REDUCTION
PRICE FLUCTUATIONS
PRICE VOLATILITY
PROBABILITY OF DEFAULT
PRODUCTIVITY
PROVISIONING RULES
PRUDENTIAL REGULATION
REAL ESTATE
REAL EXCHANGE RATES
REGULATORS
REGULATORY FRAMEWORK
REGULATORY REFORMS
REGULATORY STANDARDS
RESERVE
RESERVE REQUIREMENTS
RISK MANAGEMENT
RISK MEASUREMENT
RISK TAKING
SHORT-TERM INTEREST RATE
SHORT-TERM INTEREST RATES
SIDE EFFECTS
SOCIAL COSTS
STABLE INFLATION
STRUCTURAL SHOCKS
SURCHARGES
SYSTEMIC RISK
TEMPORARY CAPITAL INFLOWS
TERMS OF CAPITAL
TRANSACTION
TRANSACTION COSTS
TRANSMISSION MECHANISMS
UNCERTAINTY
YIELD CURVE
spellingShingle ACCOUNTABILITY
ACCOUNTING
ACCUMULATION OF RESERVES
AGGREGATE DEMAND
ARBITRAGE
ASSET PRICE
ASSET PRICE BOOMS
ASSET PRICES
ASSETS
ASYMMETRIC INFORMATION
BALANCE SHEET
BALANCE SHEETS
BANK FOR INTERNATIONAL SETTLEMENTS
BANKING CRISES
BANKING CRISIS
BANKING SUPERVISION
BANKING SYSTEM
BANKING SYSTEMS
BONDS
BORROWER
BUFFER
BUFFERS
BUSINESS CYCLES
CAPITAL ACCOUNT
CAPITAL ADEQUACY
CAPITAL CONTROLS
CAPITAL FLOW
CAPITAL FLOWS
CAPITAL INFLOW
CAPITAL INFLOWS
CAPITAL RATIOS
CAPITAL STANDARDS
CAPITALIZATION
CASH TRANSFERS
CENTRAL BANK
CENTRAL BANKING
CENTRAL BANKS
COLLATERAL
CONSOLIDATION
CORNER SOLUTION
CORNER SOLUTIONS
CREDIT EXPANSION
CREDIT GROWTH
CREDIT LINE
CREDIT SPREADS
CROSS-BORDER CAPITAL
CURRENCY
CURRENCY MISMATCHES
CURRENT ACCOUNT
CURRENT ACCOUNT BALANCES
CURRENT ACCOUNT SURPLUS
DEBT
DEPOSITORS
DEVELOPING COUNTRIES
DEVELOPMENT ECONOMICS
DISCRETIONARY MONETARY POLICY
DISEQUILIBRIUM
DISINTERMEDIATION
DISTORTIONS
DOMESTIC CREDIT
DOMESTIC CREDIT GROWTH
ECONOMIC ENVIRONMENT
ECONOMIC OUTLOOK
ECONOMIC RESEARCH
ELASTICITY
EMERGING ECONOMIES
EMERGING MARKETS
EQUILIBRIUM
EQUILIBRIUM VALUE
EQUITIES
EXCHANGE RATE
EXCHANGE RATE APPRECIATION
EXCHANGE RATE FLEXIBILITY
EXCHANGE RATE FLUCTUATIONS
EXCHANGE RATE INTERVENTIONS
EXCHANGE RATE MANAGEMENT
EXCHANGE RATE REGIME
EXCHANGE RATE REGIMES
EXCHANGE RATES
EXCHANGE-RATE
EXOGENOUS SHOCKS
EXPOSURE
EXTERNALITIES
FINANCIAL CRISES
FINANCIAL CRISIS
FINANCIAL DEVELOPMENTS
FINANCIAL INSTABILITY
FINANCIAL INSTITUTIONS
FINANCIAL INTERMEDIATION
FINANCIAL MARKET
FINANCIAL MARKETS
FINANCIAL REGULATION
FINANCIAL SECTOR
FINANCIAL SERVICES
FINANCIAL STABILITY
FINANCIAL SYSTEMS
FINANCIAL VULNERABILITIES
FISCAL IMBALANCE
FISCAL POLICY
FLEXIBLE EXCHANGE RATES
FOREIGN CAPITAL
FOREIGN CURRENCY
FUNGIBLE
GDP
GLOBAL BANKING
GLOBAL FINANCIAL SYSTEM
GLOBALIZATION
GROSS DOMESTIC PRODUCT
HOUSING
HUMAN CAPITAL
IMBALANCES
INCENTIVE STRUCTURE
INDIVIDUAL FIRMS
INFLATION
INFLATION TARGETING
INFLOWS OF CAPITAL
INSTRUMENT
INTEREST RATE
INTEREST RATE HIKES
INTERNATIONAL ECONOMIC POLICY
INTERNATIONAL FINANCIAL INSTITUTIONS
INTERNATIONAL SETTLEMENTS
LEADING INDICATORS
LEVERAGE
LIQUIDITY
LIQUIDITY REQUIREMENTS
LIQUIDITY RISKS
LOAN
LONG-TERM EQUILIBRIUM
MACROECONOMIC EFFECTS
MACROECONOMIC FLUCTUATIONS
MACROECONOMIC MODEL
MACROECONOMIC POLICIES
MACROECONOMIC POLICY
MACROECONOMIC STABILITY
MARKET EUPHORIA
MARKET FAILURES
MARKET TRENDS
MATURITY
MINIMUM CAPITAL REQUIREMENT
MINIMUM CAPITAL REQUIREMENTS
MONETARY AUTONOMY
MONETARY FUND
MONETARY POLICIES
MONETARY POLICY
MONETARY POLICY DECISIONS
MONETARY TRANSMISSION
MONETARY TRANSMISSION MECHANISMS
NATIONAL ECONOMIES
NATURAL RESOURCES
NEGATIVE EXTERNALITIES
NET CAPITAL
OPTIMIZATION
OUTPUT
OUTPUT GAP
OUTPUT GAPS
PERMANENT SHOCKS
POLICY RESPONSES
PORTFOLIO
PORTFOLIOS
POVERTY REDUCTION
PRICE FLUCTUATIONS
PRICE VOLATILITY
PROBABILITY OF DEFAULT
PRODUCTIVITY
PROVISIONING RULES
PRUDENTIAL REGULATION
REAL ESTATE
REAL EXCHANGE RATES
REGULATORS
REGULATORY FRAMEWORK
REGULATORY REFORMS
REGULATORY STANDARDS
RESERVE
RESERVE REQUIREMENTS
RISK MANAGEMENT
RISK MEASUREMENT
RISK TAKING
SHORT-TERM INTEREST RATE
SHORT-TERM INTEREST RATES
SIDE EFFECTS
SOCIAL COSTS
STABLE INFLATION
STRUCTURAL SHOCKS
SURCHARGES
SYSTEMIC RISK
TEMPORARY CAPITAL INFLOWS
TERMS OF CAPITAL
TRANSACTION
TRANSACTION COSTS
TRANSMISSION MECHANISMS
UNCERTAINTY
YIELD CURVE
Canuto, Otaviano
Cavallari, Matheus
Asset Prices, Macro Prudential Regulation, and Monetary Policy
relation Economic Premise;No. 116
description Confidence in combining inflation-targeting-cum-flexible-exchange-rate regimes with isolated micro prudential regulation as a means to guarantee both macroeconomic and financial stability has been shattered by the scale and synchronization of the asset price booms and busts that preceded the global financial crisis. It has now become clear that if monetary policy makers and prudential regulators are to succeed in achieving stability, there can be no complacency regarding asset price cycles. This note explores some of the ways in which monetary policy can address asset price booms and busts through its integration with macro prudential regulation.
format Publications & Research :: Brief
author Canuto, Otaviano
Cavallari, Matheus
author_facet Canuto, Otaviano
Cavallari, Matheus
author_sort Canuto, Otaviano
title Asset Prices, Macro Prudential Regulation, and Monetary Policy
title_short Asset Prices, Macro Prudential Regulation, and Monetary Policy
title_full Asset Prices, Macro Prudential Regulation, and Monetary Policy
title_fullStr Asset Prices, Macro Prudential Regulation, and Monetary Policy
title_full_unstemmed Asset Prices, Macro Prudential Regulation, and Monetary Policy
title_sort asset prices, macro prudential regulation, and monetary policy
publisher World Bank, Washington, DC
publishDate 2013
url http://documents.worldbank.org/curated/en/2013/05/17688951/asset-prices-macro-prudential-regulation-monetary-policy
http://hdl.handle.net/10986/16116
_version_ 1764432182662660096
spelling okr-10986-161162021-04-23T14:03:27Z Asset Prices, Macro Prudential Regulation, and Monetary Policy Canuto, Otaviano Cavallari, Matheus ACCOUNTABILITY ACCOUNTING ACCUMULATION OF RESERVES AGGREGATE DEMAND ARBITRAGE ASSET PRICE ASSET PRICE BOOMS ASSET PRICES ASSETS ASYMMETRIC INFORMATION BALANCE SHEET BALANCE SHEETS BANK FOR INTERNATIONAL SETTLEMENTS BANKING CRISES BANKING CRISIS BANKING SUPERVISION BANKING SYSTEM BANKING SYSTEMS BONDS BORROWER BUFFER BUFFERS BUSINESS CYCLES CAPITAL ACCOUNT CAPITAL ADEQUACY CAPITAL CONTROLS CAPITAL FLOW CAPITAL FLOWS CAPITAL INFLOW CAPITAL INFLOWS CAPITAL RATIOS CAPITAL STANDARDS CAPITALIZATION CASH TRANSFERS CENTRAL BANK CENTRAL BANKING CENTRAL BANKS COLLATERAL CONSOLIDATION CORNER SOLUTION CORNER SOLUTIONS CREDIT EXPANSION CREDIT GROWTH CREDIT LINE CREDIT SPREADS CROSS-BORDER CAPITAL CURRENCY CURRENCY MISMATCHES CURRENT ACCOUNT CURRENT ACCOUNT BALANCES CURRENT ACCOUNT SURPLUS DEBT DEPOSITORS DEVELOPING COUNTRIES DEVELOPMENT ECONOMICS DISCRETIONARY MONETARY POLICY DISEQUILIBRIUM DISINTERMEDIATION DISTORTIONS DOMESTIC CREDIT DOMESTIC CREDIT GROWTH ECONOMIC ENVIRONMENT ECONOMIC OUTLOOK ECONOMIC RESEARCH ELASTICITY EMERGING ECONOMIES EMERGING MARKETS EQUILIBRIUM EQUILIBRIUM VALUE EQUITIES EXCHANGE RATE EXCHANGE RATE APPRECIATION EXCHANGE RATE FLEXIBILITY EXCHANGE RATE FLUCTUATIONS EXCHANGE RATE INTERVENTIONS EXCHANGE RATE MANAGEMENT EXCHANGE RATE REGIME EXCHANGE RATE REGIMES EXCHANGE RATES EXCHANGE-RATE EXOGENOUS SHOCKS EXPOSURE EXTERNALITIES FINANCIAL CRISES FINANCIAL CRISIS FINANCIAL DEVELOPMENTS FINANCIAL INSTABILITY FINANCIAL INSTITUTIONS FINANCIAL INTERMEDIATION FINANCIAL MARKET FINANCIAL MARKETS FINANCIAL REGULATION FINANCIAL SECTOR FINANCIAL SERVICES FINANCIAL STABILITY FINANCIAL SYSTEMS FINANCIAL VULNERABILITIES FISCAL IMBALANCE FISCAL POLICY FLEXIBLE EXCHANGE RATES FOREIGN CAPITAL FOREIGN CURRENCY FUNGIBLE GDP GLOBAL BANKING GLOBAL FINANCIAL SYSTEM GLOBALIZATION GROSS DOMESTIC PRODUCT HOUSING HUMAN CAPITAL IMBALANCES INCENTIVE STRUCTURE INDIVIDUAL FIRMS INFLATION INFLATION TARGETING INFLOWS OF CAPITAL INSTRUMENT INTEREST RATE INTEREST RATE HIKES INTERNATIONAL ECONOMIC POLICY INTERNATIONAL FINANCIAL INSTITUTIONS INTERNATIONAL SETTLEMENTS LEADING INDICATORS LEVERAGE LIQUIDITY LIQUIDITY REQUIREMENTS LIQUIDITY RISKS LOAN LONG-TERM EQUILIBRIUM MACROECONOMIC EFFECTS MACROECONOMIC FLUCTUATIONS MACROECONOMIC MODEL MACROECONOMIC POLICIES MACROECONOMIC POLICY MACROECONOMIC STABILITY MARKET EUPHORIA MARKET FAILURES MARKET TRENDS MATURITY MINIMUM CAPITAL REQUIREMENT MINIMUM CAPITAL REQUIREMENTS MONETARY AUTONOMY MONETARY FUND MONETARY POLICIES MONETARY POLICY MONETARY POLICY DECISIONS MONETARY TRANSMISSION MONETARY TRANSMISSION MECHANISMS NATIONAL ECONOMIES NATURAL RESOURCES NEGATIVE EXTERNALITIES NET CAPITAL OPTIMIZATION OUTPUT OUTPUT GAP OUTPUT GAPS PERMANENT SHOCKS POLICY RESPONSES PORTFOLIO PORTFOLIOS POVERTY REDUCTION PRICE FLUCTUATIONS PRICE VOLATILITY PROBABILITY OF DEFAULT PRODUCTIVITY PROVISIONING RULES PRUDENTIAL REGULATION REAL ESTATE REAL EXCHANGE RATES REGULATORS REGULATORY FRAMEWORK REGULATORY REFORMS REGULATORY STANDARDS RESERVE RESERVE REQUIREMENTS RISK MANAGEMENT RISK MEASUREMENT RISK TAKING SHORT-TERM INTEREST RATE SHORT-TERM INTEREST RATES SIDE EFFECTS SOCIAL COSTS STABLE INFLATION STRUCTURAL SHOCKS SURCHARGES SYSTEMIC RISK TEMPORARY CAPITAL INFLOWS TERMS OF CAPITAL TRANSACTION TRANSACTION COSTS TRANSMISSION MECHANISMS UNCERTAINTY YIELD CURVE Confidence in combining inflation-targeting-cum-flexible-exchange-rate regimes with isolated micro prudential regulation as a means to guarantee both macroeconomic and financial stability has been shattered by the scale and synchronization of the asset price booms and busts that preceded the global financial crisis. It has now become clear that if monetary policy makers and prudential regulators are to succeed in achieving stability, there can be no complacency regarding asset price cycles. This note explores some of the ways in which monetary policy can address asset price booms and busts through its integration with macro prudential regulation. 2013-10-10T20:52:45Z 2013-10-10T20:52:45Z 2013-05 http://documents.worldbank.org/curated/en/2013/05/17688951/asset-prices-macro-prudential-regulation-monetary-policy http://hdl.handle.net/10986/16116 English en_US Economic Premise;No. 116 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Brief Publications & Research