Macroprudential and monetary policy interactions in a DSGE model for Sweden /
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Author / Creator: | Chen, Jiaqian, author, (IMF staff) |
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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: | |
Format: | E-Resource Book |
URL for this record: | http://pi.lib.uchicago.edu/1001/cat/bib/12504844 |
Other authors / contributors: | Columba, Francesco, author. International Monetary Fund. European Department, issuing body. |
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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 |
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