Name
Title | ||
|---|---|---|
Rough Sets and the role of the monetary policy in financial stability (macroeconomic problem) and the prediction of insolvency in insurance sector (microeconomic problem). |
Abstract | ||
|---|---|---|
This paper faces two questions related with financial stability. The first one is a macroeconomic problem in which we try to further investigate the role of monetary policy in explaining banking sector fragility and, ultimately, systemic banking crisis. It analyses a large sample of countries in the period 1981–1999. We find that the degree of central bank independence is one of the key variables to explain financial crisis. However, the effects of the degree of independence are not linear. Surprisingly, either a high degree of independence or a high degree of dependence are compatible with a situation of financial stability, while intermediate levels of independence are more likely associated with financial crisis. It seems that it is the uncertainty related with a non-clear allocation of monetary policy responsibilities that contributes to financial crisis episodes. |
Year | DOI | Venue |
|---|---|---|
2007 | 10.1016/j.ejor.2006.01.045 | European Journal of Operational Research |
Keywords | Field | DocType |
Rough Sets,Financial stability,Central bank independence,Insolvency,Insurance companies | Surety,Financial economics,Economics,Audit,Financial crisis,Monetary policy,Insolvency,Bankruptcy prediction,Bankruptcy,Finance,Early warning system | Journal |
Volume | Issue | ISSN |
181 | 3 | 0377-2217 |
Citations | PageRank | References |
13 | 0.67 | 5 |
Authors | ||
5 | ||