Chapter 14 The Stability of Financial Markets: Central Bank Responsibility
Author: DONALD L. KOHN
Language:
English
Keywords:
BOOK; bank; Inter-American Development Bank; government; loan; Inter-American Investment Corporation; market discipline; market participant; central bank instrument; discount window function; market insider; Commercial banks; Financial sector stability; Deposit insurance; Asset prices; Systemic risk; Europe

Abstract

The topic of this paper is the general responsibility of government for the stability of financial markets. Here in the United States we have had in the recent past marked volatility in financial markets—stock market ups and downs, junk bond bubbles, massive thrift institution insolvencies—and all of these have caused questions to be raised about banks and other financial intermediaries. Such an environment could well prompt a central bank to consider what it should be doing to ensure the stability of financial markets and the costs and benefits of its possible actions.

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Cover Current Legal Issues Affecting Central Banks, Volume II.
Current Legal Issues Affecting Central Banks, Volume II.
Volume II.
Author: Mr. Robert C. Effros
ISBN:
9781557753069
Publication Date:
01 Jun 1994
Publisher:
International Monetary Fund
DOI:
https://doi.org/10.5089/9781557753069.071
Pages:
489