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Optimal monetary policy studies typically rely on a single structural model and identification of model-specific rules that minimize the unconditional volatilities of inflation and real activity. In our proposed approach, we take a large set of structural models and look for the model-robust...
Persistent link: https://www.econbiz.de/10013545641
This paper examines jointly optimal monetary and macroprudential policies through the lens of targeting rules that are both implementable and optimal. Based on a DSGE framework that features nominal rigidity, housing, and an incomplete financial market, our targeting rules outperform an optimal...
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This paper borrows the tradition of estimating policy reaction functions from monetary policy literature to ask whether capital controls respond to macroprudential or mercantilist motivations. I explore this question using a novel, weekly dataset on capital control actions in 21 emerging...
Persistent link: https://www.econbiz.de/10012251900
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The paper examines the implementation of macro-prudential policy. Given the coordination, flow of information, analysis …
Persistent link: https://www.econbiz.de/10013084467
After the colossal financial crisis of 2008, many monetary policy analyses have shown the profound implications for financial stability of monetary policy in a liquidity trap. This paper investigates how monetary policy in a liquidity trap affects financial stability in a New Keynesian model...
Persistent link: https://www.econbiz.de/10013240606
order to stabilize nominal credit growth and the output gap. We look at the gains from coordination between the central bank … fluctuations in the macroprudential mandate. The results suggest that there can be considerable gains from coordination if the … policy maker can reach better outcomes, while the central bank does worse, in the absence of coordination. Therefore, whether …
Persistent link: https://www.econbiz.de/10011589082