Fair value accounting : what are implications for monetary and financial stability?

The current debate on the macroeconomic implications of the fair value accounting method emphasises the financial sector as an essential player in the allocation of financial resources. This article discusses the impact of this accounting method on monetary policy and financial stability, with a special emphasis on the non-financial sector. It covers four points : the effect of the fair value accounting method on monetary policy transmission channels, as well as on the quality of credit risk analysis, management prudence, and the effectiveness of corporate governance, JEL classifications : E4, E44, G14, G3, M4Mouriaux François. Fair value accounting : what are implications for monetary and financial stability?. In: Revue d'économie financière (English ed.), n°71, 2003. Fair Value. pp. 121-135