Monetary Policy and Bank Risk-Taking

 
Author/Editor: Giovanni Dell'Ariccia
 
Publication Date: July 27, 2010
 
Electronic Access: Free Full text (PDF file size is 396KB).
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Summary: This paper contributes to the current debate on what role financial stability considerations should play in monetary policy decision and how best to integrate macro-prudential and monetary policy frameworks. The paper broadly supports the view that monetary policy easing induces greater risk-taking by banks but also shows that the relationship between real interest rates and banking risk is more complex. Ultimately, it depends on how much skin in the game banks have. The central message of the paper is broadly complementary to those in the recent MCM board paper “Central Banking Lessons from the Crisis.”
 
Series: Staff Position Note No. 2010/9
Subject(s): Monetary policy | United States | Macroprudential Policy | Banks | Profits | Asset prices | Interest rates

 
English
Publication Date: July 27, 2010
ISBN/ISSN: 9781455253234 Format: Paper
Stock No: SPNEA2010009 Pages: 22
Price:
US$10.00 (Academic Rate:
US$10.00 )
 
 
English
Publication Date: July 27, 2010
ISBN/ISSN: 978-1-61635-026-0 / 2072-3202 Format: A web quality merged PDF
Stock No: SPNET2010009 Pages: 21
Price:
Free
 
 
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