On the use of Monetary and Macroprudential Policies for Small Open Economies /

We explore optimal monetary and macroprudential policy rules for a small open economy. Delegating 'lean against the wind' squarely to macroprudential policy provides a more robust policy mix to shock uncertainty-(i) if macroprudential measures exist, there are no significant welfare gains...

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Detalles Bibliográficos
Autor Principal: Ozkan, F. Gulcin
Outros autores: Unsal, Filiz
Formato: Revista
Idioma:English
Publicado: Washington, D.C. : International Monetary Fund, 2014.
Series:IMF Working Papers; Working Paper ; No. 2014/112
Acceso en liña:Full text available on IMF
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520 3 |a We explore optimal monetary and macroprudential policy rules for a small open economy. Delegating 'lean against the wind' squarely to macroprudential policy provides a more robust policy mix to shock uncertainty-(i) if macroprudential measures exist, there are no significant welfare gains from monetary policy reacting to credit growth under a financial shock; and (ii) monetary responses to financial markets could generate bigger welfare losses than macroprudential responses under different shocks. The source of outstanding liabilities also plays a role in the choice of policy instrument- macroprudential policies are particularly effective for emerging markets where foreign borrowing is sizeable. 
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700 1 |a Unsal, Filiz. 
830 0 |a IMF Working Papers; Working Paper ;  |v No. 2014/112 
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