Optimal Macroprudential Policy and Asset Price Bubbles /

An asset bubble relaxes collateral constraints and increases borrowing by credit-constrained agents. At the same time, as the bubble deflates when constraints start binding, it amplifies downturns. We show analytically and quantitatively that the macroprudential policy should optimally respond to bu...

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Autor principal: Biljanovska, Nina
Altres autors: Gornicka, Lucyna, Vardoulakis, Alexandros
Format: Revista
Idioma:English
Publicat: Washington, D.C. : International Monetary Fund, 2019.
Col·lecció:IMF Working Papers; Working Paper ; No. 2019/184
Accés en línia:Full text available on IMF