Format:
Online-Ressource (44 p)
Edition:
Online-Ausg.
ISBN:
1484302877
,
9781484302873
Series Statement:
IMF Working Papers Working Paper No. 14/30
Content:
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
Additional Edition:
Erscheint auch als Druck-Ausgabe Medina Guzman, Juan Pablo Monetary and Macroprudential Policies to Manage Capital Flows Washington, D.C. : International Monetary Fund, 2014 ISBN 9781484302873
Language:
English
DOI:
10.5089/9781484302873.001
