The Role of Central Banks in Financial Stability

In the forthcoming edited volume The Role of Central Banks in Financial Stability: How Has It Changed?, Japan Program director Takeo Hoshi contributed a chapter entitled "Role of Central Banks in Financial Stability: Lessons from the Experience of the Bank of Japan."

The book, volume 30 in the "World Scientific Studies in International Economics" series, addresses the means to prevent future financial crises and stresses a major shift in most countries toward a better understanding of financial stability and how it can be achieved. In particular, the papers in this volume examine the recent change in emphasis at central banks with regard to financial stability. For example: What were the cross-country differences in emphasis on financial stability in the past? Did these differences appear to affect the extent of the adverse impact of the financial crisis on individual countries? What are perceived to be the major future threats to financial stability?

These and related issues are discussed in the book by well-known experts in the field — some of the best minds in the world pursuing financial stability. Following the global financial crisis, significant reforms have been initiated in many countries to address financial stability more directly, frequently focusing on macroprudential policy frameworks in which central banks play a more active role.

The Role of Central Banks in Financial Stability, edited by Douglas D. Evanoff, Cornelia Holthausen, George G. Kaufman, and Manfred Kremer, will be published by World Scientific in December 2013.