Reviving a Policy Marriage
Not long ago, the separation of financial supervision and monetary policy was in vogue in many countries. In the aftermath of the global financial crisis, however, financial supervision and macroeconomic management have been forced to reunite.
https://prosyn.org/XYHLoyE
WASHINGTON, DC – Not long ago, the separation of financial supervision and monetary policy was in vogue in many countries. Some countries – like the United Kingdom and Australia – went so far as to unbundle these functions by assigning responsibility for financial stability to specialized agencies and extricating their central banks from financial supervisory issues altogether. In the aftermath of the global financial crisis, however, financial supervision and macroeconomic management have been forced to reunite.