On the use of Monetary and Macroprudential Policies for Small Open Economies /

We explore optimal monetary and macroprudential policy rules for a small open economy. Delegating 'lean against the wind' squarely to macroprudential policy provides a more robust policy mix to shock uncertainty-(i) if macroprudential measures exist, there are no significant welfare gains...

पूर्ण विवरण

ग्रंथसूची विवरण
मुख्य लेखक: Ozkan, F. Gulcin
अन्य लेखक: Unsal, Filiz
स्वरूप: पत्रिका
भाषा:English
प्रकाशित: Washington, D.C. : International Monetary Fund, 2014.
श्रृंखला:IMF Working Papers; Working Paper ; No. 2014/112
ऑनलाइन पहुंच:Full text available on IMF
विवरण
सारांश:We explore optimal monetary and macroprudential policy rules for a small open economy. Delegating 'lean against the wind' squarely to macroprudential policy provides a more robust policy mix to shock uncertainty-(i) if macroprudential measures exist, there are no significant welfare gains from monetary policy reacting to credit growth under a financial shock; and (ii) monetary responses to financial markets could generate bigger welfare losses than macroprudential responses under different shocks. The source of outstanding liabilities also plays a role in the choice of policy instrument- macroprudential policies are particularly effective for emerging markets where foreign borrowing is sizeable.
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भौतिक वर्णन:1 online resource (34 pages)
स्वरूप:Mode of access: Internet
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