Lambertini, Luisa; Mendicino, Caterina; Punzi, Maria Teresa - Dipartimento di Economia e Finanza (DEF), Libera … - 2011
This paper studies the potential gains of monetary and macro-prudential policies that lean against news-driven boom-bust cycles in housing prices and credit generated by expectations of future macroeconomic developments. First, we find no trade-off between the traditional goals of monetary...