Macroprudential and monetary policy interactions in a DSGE model for Sweden /

Macroprudential and monetary policy interactions in a DSGE model for Sweden /

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Bibliographic Details
Author / Creator:	Chen, Jiaqian, author, (IMF staff)
Imprint:	[Washington, D.C.] : International Monetary Fund, [2016] ©2016
Description:	1 online resource (58 pages) : color illustrations.
Language:	English
Series:	IMF working paper, 1018-5941 ; WP/16/74 IMF working paper ; WP/16/74.
Subject:	Monetary policy -- Sweden -- Econometric models. Financial risk management -- Sweden -- Econometric models. Housing -- Sweden -- Econometric models. Mortgages -- Sweden -- Econometric models. Housing -- Prices -- Sweden -- Econometric models. Housing -- Econometric models. Housing -- Prices -- Econometric models. Monetary policy -- Econometric models. Mortgages -- Econometric models. Sweden.
Format:	E-Resource Book
URL for this record:	http://pi.lib.uchicago.edu/1001/cat/bib/12504844

Hidden Bibliographic Details
Other authors / contributors:	Columba, Francesco, author. International Monetary Fund. European Department, issuing body.
ISBN:	1475546548 9781475546545
ISSN:	1018-5941
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).
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.
Standard no.:	10.5089/9781475546545.001

Description
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.
Item Description:	"March 2016." At head of title: "European Department."
Physical Description:	1 online resource (58 pages) : color illustrations.
Bibliography:	Includes bibliographical references (pages 57-58).
ISBN:	1475546548 9781475546545
ISSN:	1018-5941 1018-5941 ;