Munich Personal RePEc Archive

The Role of Central Banks in Sustaining Economic Recovery and in Achieving Financial Stability

Siregar, Reza Yamora and Lim, CS Vincent (2010): The Role of Central Banks in Sustaining Economic Recovery and in Achieving Financial Stability.

[img]
Preview
PDF
MPRA_paper_20846.pdf

Download (256kB) | Preview

Abstract

Whenever a financial crisis occurs, threatening a possible financial meltdown, central banks have to be at the forefront in combating, neutralizing the crisis and restoring financial stability and economic growth. In this regards, the present sub-prime crisis which originated from the US highlights a few key issues for the Southeast Asian Central banks (SEACEN). This paper reviews the policy responses to the crisis which include exit policy strategies from stimulus monetary packages. To strengthen the soundness of the financial system, going forward, the paper also highlights counter-cyclical and macro-prudential regulations that central banks may want to actively look into. These include cross-border policy cooperation and coordination, particularly in the form of the college of supervisors.

UB_LMU-Logo
MPRA is a RePEc service hosted by
the Munich University Library in Germany.