Monetary and Macroprudential Policy Rules in a Model with House Price Booms /

We argue that a stronger emphasis on macrofinancial risk could provide stabilization benefits. Simulations results suggest that strong monetary reactions to accelerator mechanisms that push up credit growth and asset prices could help macroeconomic stability. In addition, using a macroprudential ins...

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التفاصيل البيبلوغرافية
المؤلف الرئيسي: Scott, Alasdair
مؤلفون آخرون: Kannan, Prakash, Rabanal, Pau
التنسيق: دورية
اللغة:English
منشور في: Washington, D.C. : International Monetary Fund, 2009.
سلاسل:IMF Working Papers; Working Paper ; No. 2009/251
الوصول للمادة أونلاين:Full text available on IMF
الوصف
الملخص:We argue that a stronger emphasis on macrofinancial risk could provide stabilization benefits. Simulations results suggest that strong monetary reactions to accelerator mechanisms that push up credit growth and asset prices could help macroeconomic stability. In addition, using a macroprudential instrument designed specifically to dampen credit market cycles would also be useful. But invariant and rigid policy responses raise the risk of policy errors that could lower, not raise, macroeconomic stability. Hence, discretion would be required.
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وصف مادي:1 online resource (36 pages)
التنسيق:Mode of access: Internet
تدمد:1018-5941
وصول:Electronic access restricted to authorized BRAC University faculty, staff and students