Živanović, Jelena - 2021 - Last updated: June 28, 2021
This paper analyzes the design of simple macroprudential rules for bank and non-bank credit markets in a medium … rule implies near price stability, while the optimal macroprudential policy rule stabilizes bank credit and bond volumes …. Second, there is no trade-off between price and financial stability. Third, if the central bank cannot correctly identify a …