01804cas a2200253 a 4500 AALejournalIMF014494 230101c9999 xx r poo 0 0eng d 5.00 USD 9781498375429 1018-5941 BD-DhAAL BD-DhAAL Ozkan, F. Gulcin. On the use of Monetary and Macroprudential Policies for Small Open Economies / F. Gulcin Ozkan, Filiz Unsal. Washington, D.C. : International Monetary Fund, 2014. 1 online resource (34 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 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. Mode of access: Internet Unsal, Filiz. IMF Working Papers; Working Paper ; No. 2014/112 Full text available on IMF http://elibrary.imf.org/view/journals/001/2014/112/001.2014.issue-112-en.xml IMF e-Library