Monetary Policy, Financial Stability and Interest Rate Rules
Di Giorgio, Giorgio and Rotondi, Zeno (2008) Monetary Policy, Financial Stability and Interest Rate Rules. In: IBEFA – WEAI Annual Conference, Luglio 2008, Honolulu.
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This paper investigates the empirical properties of simple interest rate rules that embed either “backward” or “forward” interest rate smoothing. Such interest rate rules can be rationalized as the operative reaction functions used by central banks pursuing monetary policy and financial stability targets. We explicitly consider the implications of banks’ risk management practices for monetary policy and we derive interest rate rules by modeling the desire of the central bank to stabilize different definitions of the “basis” risk as a contribution to financial stability.
|Item Type:||Conference or Workshop Item (Paper)|
|Research documents and activity classification:||Conference Items > International Conferences > Invited Submissions|
|Divisions:||Department of Business and Management|
|Uncontrolled Keywords:||Central Banking. Interest Rate Rules. Monetary Policy. Financial Stability. Asset Prices. Futures Market. Hedging. Basis Risk. Federal Reserve. Banca centrale. Mercato a termine. Politica monetaria. Rischio.|
|MIUR Scientific Area:||Area 13 - Economics and Statistics > SECS-P/01 Political Economy|
|Deposited by:||Silvia Capobianchi|
|Date Deposited:||22 Sep 2009 08:12|
|Last Modified:||21 Apr 2015 23:10|
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