Laureys, Lien; Meeks, Roland; Wanengkirtyo, Boromeus - 2020
We reconsider the design of welfare-optimal monetary policy when financing frictions impair the supply of bank credit …, and when the objectives set for monetary policy must be simple enough to be implementable and allow for effective …-optimal Ramsey policy. The macro-financial trade-off in our estimated model of the euro area turns out to be modest, implying that …