Iscte

Mestrado

Economia

Título

Central banks and asset bubbles - the United Kingdom case

Autor

Ramos, Renato Rodrigues Marques de Freitas

Resumo

Should monetary policy through the interest rate be used to foster financial stability? This study tries to answer the question for the United Kingdom. The results show that if monetary policy tries to reduce the probability of a financial crisis by promoting financial stability due to a lower growth of real debt the costs are higher than the benefits, thus the use of monetary policy to promote financial stability is not justified for the United Kingdom, that should be the legacy of macroprudencial policy.