000027980 001__ 27980
000027980 005__ 20131209145628.0
000027980 0248_ $$aoai:doc.rero.ch:20111215110720-LO$$pinfonet_economy$$punifr$$prero_explore$$pcdu33$$preport$$zthesis_urn$$zthesis$$zbook$$zjournal$$zcdu16$$zpostprint$$zpreprint$$zcdu1$$zdissertation$$zcdu34
000027980 041__ $$aeng
000027980 080__ $$a33
000027980 100__ $$aPanzera, Fabio S.
000027980 245__ $$9eng$$aPrice stability and financial imbalances: rethinking the macrofinancial framework after the 2007-8 financial crisis
000027980 269__ $$c2011-12-15
000027980 300__ $$a31
000027980 490__ $$aWorking Papers SES$$v423
000027980 520__ $$9eng$$aDuring the two decades preceding the 2007-8 financial crisis, both advanced and emerging market economies experienced larger credit growth and asset price fluctuations than in the more distant past. These phenomena were largely due to the establishment of credible inflation targeting regimes, whose excessive focus on medium-run price stability bred unsustainable credit and asset price dynamics, to the detriment of financial stability over longer time horizons. As the financial crisis spread to the whole economy in the late 2008, many economists came to believe that monetary policy should actively lean against financial imbalances - thus challenging the canonical New Keynesian paradigm. This paper reviews the relevance of that paradigm in light of the recent financial crisis, arguing that the whole macrofinancial stability framework, rather than monetary policy per se, needs to be considered anew. In particular, some macro-prudential tools and a counter-cyclical tax on private debt could be useful instruments to counter overly credit expansion and, accordingly, smooth asset price fluctuations.
000027980 695__ $$9eng$$ainflation targeting ; New Keynesian consensus ; financial imbalances ; macro-prudential regulation ; counter-cyclical tax on debt
000027980 775__ $$gFaculté SES$$ohttp://www.unifr.ch/ses/wp
000027980 8564_ $$fWP_SES_423.pdf$$qapplication/pdf$$s305902$$uhttp://doc.rero.ch/record/27980/files/WP_SES_423.pdf$$yorder:1$$zDocument
000027980 918__ $$aFaculté des sciences économiques et sociales$$bDécanat, Av. de l'Europe 20, 1700 Fribourg
000027980 919__ $$aUniversité de Fribourg$$bFribourg$$ddoc.support@rero.ch
000027980 980__ $$aREPORT$$bUNIFR
000027980 982__ $$aWorking Papers SES
000027980 990__ $$a20111215110720-LO