search query: @indexterm Monetary Policy / total: 1108
reference: 54 / 1108
| Author: | Rajan, R.G. |
| Title: | Has finance made the world riskier? |
| Journal: | European Financial Management
2006 : SEP, VOL. 12:4, p. 499-533 |
| Index terms: | finance monetary policy derivative securities markets risk management |
| Language: | eng |
| Abstract: | Financial sector's development enables an expansion of spreading risks. However, there is also the emergence of a whole range of intermediaries, whose size and appetite for risk may expand over the cycle. As a result, under some conditions, economies may be more exposed to financial sector-induced turmoil. This paper discusses the implications for monetary policy and prudential supervision. Especially, it suggests market-friendly policies that would reduce the incentive of intermediary managers to take excessive risk. |
SCIMA