Cover IMF Working Papers
Defining Financial Stability
Author: Mr. Garry J. Schinasi
Series:
IMF Working Papers
Volume/Issue:
Volume 2004: Issue 187
Language:
English
Publication Date:
01 Oct 2004
DOI:
https://doi.org/10.5089/9781451859546.001
ISBN:
9781451859546
ISSN:
1018-5941
Pages:
19
Keywords:
WP; financial system; market; finance; economy; economic process
Legal-disclaimer:
IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
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The main objective of this paper is to propose a definition of financial stability that has some practical and operational relevance. Financial stability is defined in terms of its ability to facilitate and enhance economic processes, manage risks, and absorb shocks. Moreover, financial stability is considered a continuum: changeable over time and consistent with multiple combinations of the constituent elements of finance. The paper also discusses several practical implications of the definition that should be considered when using it for policy analysis or developing an analytical framework.
Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund