Monetary and macroprudential policy in an estimated DSGE model of the euro area /

Monetary and macroprudential policy in an estimated DSGE model of the euro area /

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Bibliographic Details
Author / Creator:	Quint, Dominic, author.
Imprint:	Washington, D.C. : International Monetary Fund, Institute for Capacity Development, 2013.
Description:	1 online resource (60 pages)
Language:	English
Series:	IMF working paper ; WP13/209 IMF working paper ; WP13/209.
Subject:	Monetary policy -- European Union countries -- Econometric models. Monetary unions -- European Union countries. Credit -- European Union countries -- Econometric models. Credit -- Econometric models. Monetary policy -- Econometric models. Monetary unions. European Union countries.
Format:	E-Resource Book
URL for this record:	http://pi.lib.uchicago.edu/1001/cat/bib/12502154

Hidden Bibliographic Details
Other authors / contributors:	Rabanal, Pau, author. International Monetary Fund. Institute for Capacity Development, issuing body.
ISBN:	9781484343029 1484343026 1484366670 9781484366677 1484311442 9781484311448
Notes:	"October 2013." Includes bibliographical references. English.
Summary:	"In this paper, the authors study the optimal mix of monetary and macroprudential policies in an estimated two-country model of the euro area. The model includes real, nominal and financial frictions, and hence both monetary and macroprudential policy can play a role. They find that the introduction of a macroprudential rule would help in reducing macroeconomic volatility, improve welfare, and partially substitute for the lack of national monetary policies. Macroprudential policy would always increase the welfare of savers, but their effects on borrowers depend on the shock that hits the economy. In particular, macroprudential policy may entail welfare costs for borrowers under technology shocks, by increasing the countercyclical behavior of lending spreads."--Summary.

Description
Summary:	In this paper, we study the optimal mix of monetary and macroprudential policies in an estimated two-country model of the euro area. The model includes real, nominal and financial frictions, and hence both monetary and macroprudential policy can play a role. We find that the introduction of a macroprudential rule would help in reducing macroeconomic volatility, improve welfare, and partially substitute for the lack of national monetary policies. Macroprudential policy would always increase the welfare of savers, but their effects on borrowers depend on the shock that hits the economy. In particular, macroprudential policy may entail welfare costs for borrowers under technology shocks, by increasing the countercyclical behavior of lending spreads.
Item Description:	"October 2013."
Physical Description:	1 online resource (60 pages)
Bibliography:	Includes bibliographical references.
ISBN:	9781484343029 1484343026 1484366670 9781484366677 1484311442 9781484311448