The DOI matches its Crossref record; 58 of the 58 references it cites were found in a registry or an index.
Monetary Policy as Financial Stability Regulation
Abstract
This article develops a model that speaks to the goals and methods of financial stability policies. There are three main points. First, from a normative perspective, the model defines the fundamental market failure to be addressed, namely, that unregulated private money creation can lead to an externality in which intermediaries issue too much short-term debt and leave the system excessively vulnerable to costly financial crises. Second, it shows how in a simple economy where commercial banks are the only lenders, conventional monetary policy tools such as open-market operations can be used to regulate this externality, whereas in more advanced economies it may be helpful to supplement monetary policy with other measures. Third, from a positive perspective, the model provides an account of how monetary policy can influence bank lending and real activity, even in a world where prices adjust frictionlessly and there are other transactions media besides bank-created money that are outside the control of the central bank.
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Cites
The Cost of Capital, Corporation Finance and the Theory of Investment
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Determinants of corporate borrowing
Myers, S. C. (1977) · Journal of Financial Economics · doi:10.1016/0304-405x(77)90015-0 · Cited by 13,169
Bank Runs, Deposit Insurance, and Liquidity
Diamond, D. W., & Dybvig, P. H. (1983) · Journal of Political Economy · doi:10.1086/261155 · Cited by 9,369
Discretion versus policy rules in practice
Taylor, J. B. (1993) · Carnegie-Rochester Conference Series on Public Policy · doi:10.1016/0167-2231(93)90009-l · Cited by 9,065
Financial intermediation and delegated monitoring
Diamond, D. W. (1984) · The Review of Economic Studies · doi:10.2307/2297430 · Cited by 8,476
Shleifer, A., & Vishny, R. W. (1997) · The Journal of Finance · doi:10.1111/j.1540-6261.1997.tb03807.x · Cited by 5,291
Market Liquidity and Funding Liquidity
Brunnermeier, M. K., & Pedersen, L. H. (2009) · Review of Financial Studies · doi:10.1093/rfs/hhn098 · Cited by 4,835
Kiyotaki, N., & Moore, J. (1997) · Journal of Political Economy · doi:10.1086/262072 · Cited by 4,694
Liquidation Values and Debt Capacity: A Market Equilibrium Approach
SHLEIFER, A., & VISHNY, R. W. (1992) · The Journal of Finance · doi:10.1111/j.1540-6261.1992.tb04661.x · Cited by 2,893
The federal funds rate and the channels of monetary transmissionPreprint
Bernanke, B., & Blinder, A. S. (1989) · RePEc: Research Papers in Economics · Cited by 2,833
Cited by
Admati, A. R., DeMarzo, P. M., Hellwig, M. F., & Pfleiderer, P. C. (2013) · SSRN Electronic Journal · doi:10.2139/ssrn.2349739 · Cited by 444
GENNAIOLI, N., SHLEIFER, A., & VISHNY, R. W. (2013) · The Journal of Finance · doi:10.1111/jofi.12031 · Cited by 441
Greenwood, R., & Scharfstein, D. (2013) · Journal of Economic Perspectives · doi:10.1257/jep.27.2.3 · Cited by 433
Financial innovation: The bright and the dark sides
Beck, T., Chen, T., Lin, C., & Song, F. M. (2016) · Journal of Banking & Finance · doi:10.1016/j.jbankfin.2016.06.012 · Cited by 426
Liquidity Trap and Excessive Leverage
Korinek, A., & Simsek, A. (2016) · American Economic Review · doi:10.1257/aer.20140289 · Cited by 361
Metadata
- Authors
- Stein, J. C.
- Venue
- The Quarterly Journal of Economics
- Publisher
- Oxford University Press (OUP)
- Published
- 2012-01-06
- Volume
- 127
- Issue
- 1
- Pages
- 57-95
- ISSN
- 0033-5533 (ISSN-L)
- 1531-4650
- OpenAlex
- W2124974534
- Cited by
- 846
- References
- 58
- FWCI
- 126.83
- Type
- journal article
- Language
- en
- Open access
- closed
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Data sources
Bibliographic data: Semantic Scholar, OpenAlex, Crossref.
Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).
Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.
