Monetary and macroprudential policies to manage capital flows /

Monetary and macroprudential policies to manage capital flows /

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Bibliographic Details
Author / Creator:	Medina Guzman, Juan Pablo, 1971- author.
Imprint:	[Washington, D.C.] : International Monetary Fund, ©2014.
Description:	1 online resource (44 pages)
Language:	English
Series:	IMF working paper ; WP/14/30 IMF working paper ; WP/14/30.
Subject:	Monetary policy -- Econometric models. Capital movements -- Econometric models. Capital movements -- Econometric models. Monetary policy -- Econometric models. Electronic books.
Format:	E-Resource Book
URL for this record:	http://pi.lib.uchicago.edu/1001/cat/bib/12502637

Hidden Bibliographic Details
Other authors / contributors:	Roldós, Jorge E., 1958- author.
ISBN:	1306513480 9781306513487 9781484302873 1484302877 9781484303542 1484303547
Notes:	At head of title: IMF Institute for Capacity Development. Includes bibliographical references. Online resource; title from digital title page (IMF.org web site, viewed March 28, 2014).
Summary:	"We study interactions between monetary and macroprudential policies in a model with nominal and financial frictions. The latter derive from a financial sector that provides credit and liquidity services that lead to a financial accelerator-cum-fire-sales amplification mechanism. In response to fluctuations in world interest rates, inflation targeting dominates standard Taylor rules, but leads to increased volatility in credit and asset prices. The use of a countercyclical macroprudential instrument in addition to the policy rate improves welfare and has important implications for the conduct of monetary policy. "Leaning against the wind" or augmenting a standard Taylor rule with an argument on credit growth may not be an effective policy response"--Abstract

Description
Summary:	We study interactions between monetary and macroprudential policies in a model with nominal and financial frictions. The latter derive from a financial sector that provides credit and liquidity services that lead to a financial accelerator-cum-fire-sales amplification mechanism. In response to fluctuations in world interest rates, inflation targeting dominates standard Taylor rules, but leads to increased volatility in credit and asset prices. The use of a countercyclical macroprudential instrument in addition to the policy rate improves welfare and has important implications for the conduct of monetary policy. "Leaning against the wind" or augmenting a standard Taylor rule with an argument on credit growth may not be an effective policy response.
Item Description:	At head of title: IMF Institute for Capacity Development.
Physical Description:	1 online resource (44 pages)
Bibliography:	Includes bibliographical references.
ISBN:	1306513480 9781306513487 9781484302873 1484302877 9781484303542 1484303547