01836cas a2200241 a 4500 AALejournalIMF016545 230101c9999 xx r poo 0 0eng d 5.00 USD 9781498314787 1018-5941 BD-DhAAL BD-DhAAL Svensson, Lars. Cost-Benefit Analysis of Leaning Against the Wind : Are Costs Larger Also with Less Effective Macroprudential Policy? / Lars Svensson. Washington, D.C. : International Monetary Fund, 2016. 1 online resource (76 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 'Leaning against the wind' (LAW) with a higher monetary policy interest rate may have benefits in terms of lower real debt growth and associated lower probability of a financial crisis but has costs in terms of higher unemployment and lower inflation, importantly including a higher cost of a crisis when the economy is weaker. For existing empirical estimates, costs exceed benefits by a substantial margin, even if monetary policy is nonneutral and permanently affects real debt. Somewhat surprisingly, less effective macroprudential policy and generally a credit boom, with resulting higher probability, severity, or duration of a crisis, increases costs of LAW more than benefits, thus further strengthening the strong case against LAW. Mode of access: Internet IMF Working Papers; Working Paper ; No. 2016/003 Full text available on IMF http://elibrary.imf.org/view/journals/001/2016/003/001.2016.issue-003-en.xml IMF e-Library