Monetary and Macroprudential Policies to Manage Capital Flows /

We study interactions between monetary and macroprudential policies in a model with nominal and financial frictions. The latter derive from a financial sector that provides credit and liquidity services that lead to a financial accelerator-cum-fire-sales amplification mechanism. In response to fluct...

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Autor principal: Medina Guzman, Juan Pablo
Altres autors: Roldos, Jorge
Format: Revista
Idioma:English
Publicat: Washington, D.C. : International Monetary Fund, 2014.
Col·lecció:IMF Working Papers; Working Paper ; No. 2014/030
Accés en línia:Full text available on IMF
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245 1 0 |a Monetary and Macroprudential Policies to Manage Capital Flows /  |c Juan Pablo Medina Guzman, Jorge Roldos. 
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300 |a 1 online resource (44 pages) 
490 1 |a IMF Working Papers 
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500 |a <strong>On-Campus Access:</strong> No User ID or Password Required 
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520 3 |a We study interactions between monetary and macroprudential policies in a model with nominal and financial frictions. The latter derive from a financial sector that provides credit and liquidity services that lead to a financial accelerator-cum-fire-sales amplification mechanism. In response to fluctuations in world interest rates, inflation targeting dominates standard Taylor rules, but leads to increased volatility in credit and asset prices. The use of a countercyclical macroprudential instrument in addition to the policy rate improves welfare and has important implications for the conduct of monetary policy. 'Leaning against the wind' or augmenting a standard Taylor rule with an argument on credit growth may not be an effective policy response. 
538 |a Mode of access: Internet 
700 1 |a Roldos, Jorge. 
830 0 |a IMF Working Papers; Working Paper ;  |v No. 2014/030 
856 4 0 |z Full text available on IMF  |u http://elibrary.imf.org/view/journals/001/2014/030/001.2014.issue-030-en.xml  |z IMF e-Library