Monetary Policy and Financial Stability: Challenges before and after the Global Financial Crisis

This book explores how monetary policy contributes to the efficient allocation of resources, with special reference made to the contribution of the effective workings of the financial system. It argues that the stability of the financial system promotes the smooth functioning of the payment systems and the effective transmission of monetary policy, thus promoting the achievement of monetary policy objectives. The interrelated issues addressed here include the ways various monetary policy objectives are achieved, their effective presentation to the public, and the strategic role of money growth in the conduct of monetary policy. The analysis underlines the context of financial-market performance in recent decades and the varied central bank responses to the emergence of the global financial crisis. This book constitutes a useful companion to graduate students in economics, researchers and business and central banking practitioners in understanding the unending quest of the shifting roles of money and financial practices to reconcile growth and stability.


Ioanna T. Kokores, PhD, is Assistant Professor in Monetary Theory and Policy in the Department of Economics of the University of Piraeus, Athens, Greece. She was awarded the academic distinction of ‘International Atlantic Economic Society Member of the Month – June 2017’ for her contribution to research, while she also served as lead editor of the volume Money, Trade and Finance: Recent Trends and Methodological Issues (2021).

“There is a question, the author states, of how much risk the government and central bank can shoulder without raising unacceptable economic and social costs. What is needed for a more robust, stabilizing financial system is more risk-bearing by decision-makers, that is, the realization of genuine, incentive-and-information-driven markets. This book explores these issues in the context of financial-market performance in recent decades. A principal conclusion is that the unwinding of bubbles and episodes of financial stress are too frequent and costly to be dismissed as exogenous shocks of little consequence to forward-looking stabilisation policy, so that academic researchers and central bank practitioners should ask whether and how policy should intervene when financial stress inevitably arises. The task of delivering economic stability requires a firm grasp of how to help markets become more robust.”
John H. Wood
Reynolds Professor of Economics, Wake Forest University, USA

Buy This Book

ISBN: 1-5275-9185-9

ISBN13: 978-1-5275-9185-1

Release Date: 19th December 2022

Pages: 499

Price: £83.99

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