Why Central Banks Must Gage Asset Bubbles -- and Stability
Episode Description
When it comes to global financial crises, planning must focus on the future, not the past, says Wharton’s Franklin Allen. More: http://knlg.net/1pq2bct 📂 Finance & Accounting;Public Policy 🏷️ Great Recession;Research
Brief Summary
Central banks must adopt a holistic approach to manage inflation, financial stability, and systemic risks effectively.
Key points
- Rethinking Financial Stability. Financial stability must be prioritized alongside inflation, as they are intertwined issues.
- Japan's Economic Challenges. Japan's long struggle with low growth and interest rates highlights systemic risks in financial policy.
Ask about Knowledge at Wharton
Episode highlights
- Rethinking Financial StabilityFinancial stability must be prioritized alongside inflation, as they are intertwined issues.“Financial stability isn’t secondary; it’s a primary target.”2:57Oct 28, 2014
- Japan's Economic ChallengesJapan's long struggle with low growth and interest rates highlights systemic risks in financial policy.“Japan had a massive property and stock bubble back in the late 80s.”5:04Oct 28, 2014
Tension
55/ 100Some tension
