Hidden Bibliographic Details
| Other authors / contributors: | Columba, Francesco, author.
International Monetary Fund. European Department, issuing body.
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| ISBN: | 1475546548
9781475546545
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| ISSN: | 1018-5941
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| Notes: | "March 2016."
At head of title: "European Department."
Includes bibliographical references (pages 57-58).
Online resource; title from pdf title page (IMF.org Web site, viewed March 28, 2016).
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| Summary: | We analyse the effects of macroprudential and monetary policies and their interactions using an estimated dynamic stochastic general equilibrium (DSGE) model tailored to Sweden. Households face a ceiling on their loan-to-value ratio and must amortize their mortgages. The government grants mortgage interest payment deductions. Lending rates are affected by mortgage risk weights. We find that demand-side macroprudential measures are more effective in curbing household debt ratios than monetary policy, and they are less costly in terms of foregone consumption. A tighter macroprudential stance is also found to be welfare improving, by promoting lower consumption volatility in response to shocks, especially when using a combination of macroprudential instruments--Abstract.
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| Standard no.: | 10.5089/9781475546545.001
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