Achieving Targeted Aims and Objectives of Fiscal, Monetary, Prudential Policy Responses Post Regulatory Crises and Global Pandemics.

Centre for Innovation and Sustainable Development Economic Review 2020

12 Pages Posted: 31 Aug 2020

See all articles by Marianne Ojo D Delaney PhD

Marianne Ojo D Delaney PhD

American Accounting Association; Centre for Innovation and Sustainable Development (CISD)

Date Written: August 28, 2020

Abstract

Even though it has recently been highlighted that the timeline for recovery from the ongoing pandemic is highly uncertain and “will depend heavily on the course of the pandemic”, consumer confidence and expectations, also impact the level of consumer spending and the role of providing greater certainty as regards the resumption of economic activity, ultimately, lies with respective governments.

What measures could be introduced as incentives to encourage banks to make greater use of macro prudential policy tools and particularly those targeted towards Basel III objectives and tools introduced through the conservative, countercyclical buffers, as well as liquidity (Liquidity Coverage Ratio, Net Stable Funding Ratios) and leverage ratio tools of supervision?

How can bank lending be encouraged as a means of achieving the targeted aim of boosting economic activity?

As well as addressing the afore mentioned issues, this paper aims to consider the impact of recent Covid-19 regulatory measures on bank activities, incentives and risk taking activities. Further, it aims to explore possibilities whereby Basel III measures, which have been designed to address banking and economic problems during periods of economic downturns could be implemented and taken greater advantage of, more effectively.

As the paper will further highlight, innovative approaches are increasingly being embraced and adopted by many businesses who recognize the need to adapt to a changing environment and way of life. Herein lies a role, not only for governments, employees and employers in facilitating speedier resumption of economic activities and a return to economic recovery, but also in ensuring that efforts undertaken by regulatory bodies, as well as central bank and federal regulators, achieve their intended and maximal objectives.

Keywords: inflation targeting, interest rates, asset purchase programs, Effective Lower Bound, monetary policy, macro prudential supervision, capital, liquidity, regulatory requirements, social distancing

Suggested Citation

Ojo D Delaney PhD, Marianne, Achieving Targeted Aims and Objectives of Fiscal, Monetary, Prudential Policy Responses Post Regulatory Crises and Global Pandemics. (August 28, 2020). Centre for Innovation and Sustainable Development Economic Review 2020, Available at SSRN: https://ssrn.com/abstract=3682765

Marianne Ojo D Delaney PhD (Contact Author)

American Accounting Association ( email )

5717 Bessie Drive
Sarasota, FL 34233-2399
United States

Centre for Innovation and Sustainable Development (CISD) ( email )

United States

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
9
Abstract Views
175
PlumX Metrics