IMF Working Papers

Toward a Framework for Safeguarding Financial Stability

June 1, 2004

Download PDF

Preview Citation

Format: Chicago

Toward a Framework for Safeguarding Financial Stability, (USA: International Monetary Fund, 2004) accessed September 27, 2024
Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

This paper examines the emergence of financial stability as a key policy objective. It discusses the underlying trends in the financial system, as well as the role of finance in relation to money, the real economy, and public policy. Financial stability is defined in terms of its ability to help the economic system allocate resources, manage risks, and absorb shocks. Moreover, financial stability is considered a continuum, changeable over time and consistent with multiple combinations of its constituent elements. On the basis of these concepts, a framework is presented that comprises an encompassing analysis and assessment of financial stability, and maps out broad policy implications.

Subject: Asset prices, Banking, Financial crises, Financial sector policy and analysis, Financial sector stability, Financial stability assessment, Prices, Systemic risk

Keywords: Asset prices, Economic system, Financial sector stability, Financial stability, Financial stability assessment, Financial system performance, Financial-system policy, Foregone exchange opportunity, Market confidence, Market discipline, Market failure, Market imperfection, Market uncertainty, Payments system, Policy framework, Public goods, Systemic risk, Unit of account, WP

Publication Details

  • Pages:

    48

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Working Paper No. 2004/101

  • Stock No:

    WPIEA1012004

  • ISBN:

    9781451852547

  • ISSN:

    1018-5941

You May Also Be Interested In...

Brunei Darussalam: Selected Issues

September 24, 2024

Navigating External Shocks in Southeast Asia's Emerging Markets: Key Lessons and Challenges in Applying the IMF’s Integrated Policy Framework

September 23, 2024

Systemic Implications of Financial Inclusion

September 20, 2024

Zimbabwe: Technical Assistance Report-Financial Sector Stability Report Follow Up Technical Assistance on the Implementation of the Basel III Liquidity Framework

September 20, 2024