Assets matter: New and old views of monetary policy
Stellenbosch Working Paper Series No. WP16/2012Publication date: 2012
Author(s):
An extraordinary consensus on the goals and conduct of monetary has been undermined by the international financial crisis and the faltering recovery in many economies. There is an evident need to pay closer attention to developments of asset markets and in the financial sector, which has opened a discussion on the appropriate goals for monetary policy. Meanwhile central banks have employed controversial balance sheet operations to restore market stability and encourage economic recovery. This paper argues that both these developments reflect earlier concerns in monetary policy: prior to the modern consensus both balance sheet policies and an emphasis on financial stability were central concerns of monetary authorities and the future of monetary policy is likely to rhyme with its past.
JEL Classification:E51, E52, E58
Keywords:monetary policy, interest rate policy, balance sheet operations, financial stability
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19 Apr 2024There was good news for global growth this week – with China's Q1 GDP beating expectations (see international section) and the IMF lifting its global growth forecast for 2024 once more. SA economic data releases, however, were mixed, with a welcome downtick in CPI inflation but relatively poor internal trade data. Most of the world’s economic policymakers...
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BER Weekly
19 Apr 2024There was good news for global growth this week – with China's Q1 GDP beating expectations (see international section) and the IMF lifting its global growth forecast for 2024 once more. SA economic data releases, however, were mixed, with a welcome downtick in CPI inflation but relatively poor internal trade data. Most of the world’s economic policymakers...
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