Hidden Bibliographic Details
| Other authors / contributors: | Svensson, Lars E. O., author.
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| ISBN: | 1498314783
9781498314787
9781498314787
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| ISSN: | 1018-5941
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| Notes: | "January 2016."
Includes bibliographical references.
Print version record.
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| Summary: | 'Leaning against the wind' (LAW) with a higher monetary policy interest rate may have benefits in terms of lower real debt growth and associated lower probability of a financial crisis but has costs in terms of higher unemployment and lower inflation, importantly including a higher cost of a crisis when the economy is weaker. For existing empirical estimates, costs exceed benefits by a substantial margin, even if monetary policy is nonneutral and permanently affects real debt. Somewhat surprisingly, less effective macroprudential policy and generally a credit boom, with resulting higher probability, severity, or duration of a crisis, increases costs of LAW more than benefits, thus further strengthening the strong case against LAW.
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| Other form: | Print Version: Svensson, Lars E.O. Cost-Benefit Analysis of Leaning Against the Wind : Are Costs Larger Also with Less Effective Macroprudential Policy?. Washington, D.C. : International Monetary Fund, 2016 9781498314787
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| Standard no.: | 10.5089/9781498314787.001
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