Do central bank policies since the crisis carry risks to financial stability? in chater 3 of the Global financial stability report – old risks, new challenges published by IMF, indicated by Alvaro Manoel. “Investigates the monetary policies pursued by four central banks (the Federal Reserve, Bank of England, European Central Bank, and Bank of Japan), including prolonged periods of low real policy interest rates and unconventional measures, including asset purchases. The policies appear to have lessened banking sector vulnerabilities and contributed to financial stability in the short term. However, policymakers should alert to the possibility that risks may rise the longer these policies are maintained. Though not failsafe, targeted micro and macroprudential tools should be used to mitigate risks while allowing greater leeway for monetary policy to support the macroeconony.”
Old Risks, New Challenges (IMF)
