Claudio Borio

Claudio Borio is currently Head of Research and Policy Analysis, Bank of International Settlements. During 1985–1987 he was an economist at the OECD in the country studies branch of the Economics and Statistics Department. Prior to that he was Lecturer and Research Fellow at Brasenose College, Oxford University. He holds a DPhil and MPhil in Economics and a BA in Politics, Philosophy and Economics from the same university.

Papers Published in World Economics:

Monetary Policy

A growing challenge for central banks is to secure monetary and financial stability simultaneously. Indeed, somewhat paradoxically, success in controlling inflation can sometimes contribute to the development of imbalances that ultimately lead to financial stresses, with potentially serious macroeconomic consequences. And a monetary regime that does not take these imbalances into account may unwittingly accommodate their further build-up. Accordingly, despite the difficulties involved, it may be desirable, in some circumstances, for monetary policy to be used to contain financial imbalances before they grow too large, even if the imbalances pose no immediate threat to inflation. Justifying such a response would not require redefining the ultimate objectives of monetary policy. It would, however, arguably call for adopting longer policy horizons than are commonly used and paying greater attention to the balance of risks facing the economy.

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