Potential impact of financial innovation on monetary policy
In-Depth Analysis
15-05-2017
The recent wave of financial innovation poses a serious challenge to the financial industry’s business model in both its banking and non-banking components. If not responded to adequately and timely by regulators, it may create new risks to financial stability, as occurred before the global financial crisis of 2007-2009. However, financial innovation will not seriously affect the process of monetary policymaking and is unlikely to undermine the ability of central banks to perform their price stability mission.
In-Depth Analysis
External author
Marek DABROWSKI (CASE, Center for Social and Economic Research)
About this document
Publication type
Keyword
- communications
- diffusion of innovations
- EDUCATION AND COMMUNICATIONS
- electronic money
- FINANCE
- financial instrument
- free movement of capital
- information technology
- innovation
- monetary economics
- monetary policy
- PRODUCTION, TECHNOLOGY AND RESEARCH
- research and intellectual property
- technology and technical regulations