Author
Listed:
- John Taylor
(Stanford University)
AbstractThis paper considers three simple rules-based strategies to improve and maintain financial stability. The first reforms the rules of bankruptcy to handle large financial institutions with a minimum of disruption. The second would focus macro-prudential policy on setting permanent and appropriate capital and subordinated debt ratios rather than discretionary countercyclical adjustments. The third would re-establish a rules-based monetary policy. Taken together these three reforms would constitute a sound overall strategy to improve financial and economic stability.
Suggested Citation
John Taylor, 2013.
"Simple Rules for Financial Stability,"
Discussion Papers
12-031, Stanford Institute for Economic Policy Research.
Handle:
RePEc:sip:dpaper:12-031
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References listed on IDEAS
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Full references (including those not matched with items on IDEAS)
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