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Financial Stability: Why? Who? How? | 17657
International Research Journals

Journal of Research in Economics and International Finance

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Financial Stability: Why? Who? How?

Abstract

Ibrahima Thiam

The objective of this paper is to contribute to the debate on the issues of financial stability. We ask three basic questions, namely, why financial stability: the question of the importance of a stable financial system for different economies. Who must ensure financial stability: it is the question about the place and role of different actors involved in the preservation of financial stability. Finally, how to ensure financial stability: the question of ways and means to preserve the stability of the financial system nationally and internationally. Our analysis shows that a stable financial system is essential to a functioning economy and the successful implementation of monetary policy. Central banks are at the heart of the various strategies for the preservation of financial stability. However, to ensure financial system stability, stakeholder coordination is needed with an important role to play by the government.

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