Toward a Framework for Safeguarding Financial （对维护金融的框架）.pdfVIP

WP/04/101 Toward a Framework for Safeguarding Financial Stability Aerdt Houben, Jan Kakes, and Garry Schinasi © 2004 International Monetary Fund WP/04/101 IMF Working Paper International Capital Markets Department Toward a Framework for Safeguarding Financial Stability Prepared by Aerdt Houben, Jan Kakes, and Garry Schinasi1 June 2004 Abstract This Working Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate. This paper examines the emergence of financial stability as a key policy objective. It discusses the underlying trends in the financial system, as well as the role of finance in relation to money, the real economy, and public policy. Financial stability is defined in terms of its ability to help the economic system allocate resources, manage risks, and absorb shocks. Moreover, financial stability is considered a continuum, changeable over time and consistent with multiple combinations of its constituent elements. On the basis of these concepts, a framework is presented that comprises an encompassing analysis and assessment of financial stability, and maps out broad policy implications. JEL Classification Numbers: E60, G00 Keywords: Financial stability, Policy framework Author’s E-Mail Address: a.c.f.j.houben@dnb.nl, j.i.kakes@dnb.nl , gschinasi@ 1 Aerdt Houben a