Leaning against the wind and crisis risk

Moritz Schularick, Lucas ter Steege, Felix Ward

Can central banks defuse rising stability risks in financial booms by leaning against the wind with higher interest rates? This paper studies the state-dependent effects of monetary policy on financial crisis risk. Based on the near-universe of advanced economy gonancial cycles since the 19th century, we show that discretionary leaning against the wind policies during credit and asset price booms are more likely to trigger crises than prevent them.

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Year of publication:	[2020]
Authors:	Schularick, Moritz ; Ter Steege, Lucas ; Ward, Felix
Publisher:	Köln : ECONtribute
Subject:	financial stability \| monetary policy \| local projections \| Geldpolitik \| Monetary policy \| Finanzkrise \| Financial crisis \| Schock \| Shock \| Geldpolitische Transmission \| Monetary transmission

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Extent:	1 Online-Ressource (circa 20 Seiten) Illustrationen
Series:	ECONtribute discussion paper. - Köln : [ECONtribute], ZDB-ID 3035748-2. - Vol. no. 041 (November 2020)
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Graue Literatur ; Non-commercial literature ; Arbeitspapier ; Working Paper
Language:	English
Other identifiers:	hdl:10419/226841 [Handle]
Classification:	E44 - Financial Markets and the Macroeconomy ; E50 - Monetary Policy, Central Banking and the Supply of Money and Credit. General ; G01 - Financial Crises ; G15 - International Financial Markets ; N10 - Macroeconomics and Monetary Economics; Growth and Fluctuations. General, International, or Comparative
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://www.econbiz.de/10012319939