Interest rates ‘too blunt’ to address financial stability, says Chilean governor
Interest rates can be "too blunt" a tool to deal with financial stability issues, the governor of the Central Bank of Chile, Rodrigo Vergara, told an audience in Santiago on November 15
Speaking at a conference on central banking, Vergara discussed the merits of different tools in pursuing financial stability, and argued the interest rate is often unsuitable, as it targets every sector of the economy as opposed to the direct sources of instability. There is also the risk of conflict with the
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