Transparency on financial stability not always optimal – Fed paper

Financial crisis

Under some conditions it may be optimal for central banks to avoid revealing too much information on the state of the credit cycle, new research published by the Federal Reserve finds.

David Arseneau studies the question of when a central bank can benefit from being better informed than the wider population. He finds that when financial stability vulnerabilities are “complex” – a non-linear crisis probability function – central banks can use macro-prudential policy to affect real economic

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here:

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: