"Leaning against the wind" and the timing of monetary policy /

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Bibliographic Details
Author / Creator:	Agur, Itai, author.
Imprint:	Washington, D.C. : International Monetary Fund, Singapore Regional Training Institute, 2013.
Description:	1 online resource (29 pages)
Language:	English
Series:	IMF working paper ; WP/13/86 IMF working paper ; WP/13/86.
Subject:	Monetary policy -- Econometric models. Banks and banking -- Risk management -- Econometric models. Monetary policy -- Econometric models.
Format:	E-Resource Book
URL for this record:	http://pi.lib.uchicago.edu/1001/cat/bib/12501803

Hidden Bibliographic Details
Other authors / contributors:	Demertzis, Maria, author. IMF-Singapore Regional Training Institute, issuing body.
ISBN:	9781484394571 1484394577 9781484378380 1484378385 9781484369371 1484369378
Notes:	Title from PDF title page (IMF Web site, viewed Apr. 29, 2013). "April 2013." Includes bibliographical references.
Summary:	"If monetary policy is to aim also at financial stability, how would it change? To analyze this question, this paper develops a general-form framework. Financial stability objectives are shown to make monetary policy more aggressive: in reaction to negative shocks, cuts are deeper but shorter-lived than otherwise. By keeping cuts brief, monetary policy tightens as soon as bank risk appetite heats up. Within this shorter time span, cuts must then be deeper than otherwise to also achieve standard objectives. Finally, they analyze how robust this result is to the presence of a bank regulatory tool, and provide a parameterized example."--Abstract.

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