Central bank strategies to boost investor confidence in an era of volatility, rapid economic transformation, and uncertainty
- Author: Elvira Nabiullina
- Main Title: Women Shaping Global Economic Governance , pp 27-32
- Publication Date: July 2019
- DOI: https://doi.org/10.18356/80ce5b9e-en
- Language: English
Macroeconomic stability and financial stability are the key preconditions for building investor confidence. All investors, portfolio and direct alike, invest in those countries that can guarantee a certain level of policy predictability and whose economies are largely resilient to shocks. Meeting these two conditions reduces the macroeconomic risks for projects, allowing a country to attract more long-term investments as well as investors from the complex sectors of the economy. On the other hand, portfolio investments themselves can be a source of volatility. Therefore, in order to guarantee price and financial stability, central banks should have a consistent and predictable monetary policy framework in place that includes a range of financial stability instruments and can manage risks to both domestic and reserve currency liquidity.
-
From This Site
/content/books/9781912179237s005-c004dcterms_title,dcterms_subject,pub_keyword-contentType:Journal -contentType:Contributor -contentType:Concept -contentType:Institution105