01714cas a2200253 a 4500 AALejournalIMF013489 230101c9999 xx r poo 0 0eng d 5.00 USD 9781484378380 1018-5941 BD-DhAAL BD-DhAAL Agur, Itai. Leaning Against the Wind and the Timing of Monetary Policy / Itai Agur, Maria Demertzis. Washington, D.C. : International Monetary Fund, 2013. 1 online resource (29 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students If monetary policy is to aim also at financial stability, how would it change? To analyze this question, this paper develops a general-form framework. Financial stability objectives are shown to make monetary policy more aggressive: in reaction to negative shocks, cuts are deeper but shorter-lived than otherwise. By keeping cuts brief, monetary policy tightens as soon as bank risk appetite heats up. Within this shorter time span, cuts must then be deeper than otherwise to also achieve standard objectives. Finally, we analyze how robust this result is to the presence of a bank regulatory tool, and provide a parameterized example. Mode of access: Internet Demertzis, Maria. IMF Working Papers; Working Paper ; No. 2013/086 Full text available on IMF http://elibrary.imf.org/view/journals/001/2013/086/001.2013.issue-086-en.xml IMF e-Library