01855cas a2200253 a 4500 AALejournalIMF013933 230101c9999 xx r poo 0 0eng d 5.00 USD 9781484333693 1018-5941 BD-DhAAL BD-DhAAL Quint, Dominic. Monetary and Macroprudential Policy in an Estimated DSGE Model of the Euro Area / Dominic Quint, Pau Rabanal. Washington, D.C. : International Monetary Fund, 2013. 1 online resource (60 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 In this paper, we study the optimal mix of monetary and macroprudential policies in an estimated two-country model of the euro area. The model includes real, nominal and financial frictions, and hence both monetary and macroprudential policy can play a role. We find that the introduction of a macroprudential rule would help in reducing macroeconomic volatility, improve welfare, and partially substitute for the lack of national monetary policies. Macroprudential policy would always increase the welfare of savers, but their effects on borrowers depend on the shock that hits the economy. In particular, macroprudential policy may entail welfare costs for borrowers under technology shocks, by increasing the countercyclical behavior of lending spreads. Mode of access: Internet Rabanal, Pau. IMF Working Papers; Working Paper ; No. 2013/209 Full text available on IMF http://elibrary.imf.org/view/journals/001/2013/209/001.2013.issue-209-en.xml IMF e-Library