01790cas a2200253 a 4500 AALejournalIMF019431 230101c9999 xx r poo 0 0eng d 5.00 USD 9781498320856 1018-5941 BD-DhAAL BD-DhAAL Ben Hassine, Moez. Informality, Frictions, and Macroprudential Policy / Moez Ben Hassine, Nooman Rebei. Washington, D.C. : International Monetary Fund, 2019. 1 online resource (37 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 analyze the effects of macroprudential policies through the lens of an estimated dynamic stochastic general equilibrium (DSGE) model tailored to developing markets. In particular, we explicitly introduce informality in the labor and goods markets within a small open economy embedding financial frictions, nominal and real rigidities, labor search and matching, and an explicit banking sector. We use the estimated version of the model to run welfare analysis under optimized monetary and macroprudential rules. Results show that although informality reduces the efficiency of macroprudential policies following a convex fashion, combining the latter with an inflation targeting objective could be beneficial. Mode of access: Internet Rebei, Nooman. IMF Working Papers; Working Paper ; No. 2019/255 Full text available on IMF http://elibrary.imf.org/view/journals/001/2019/255/001.2019.issue-255-en.xml IMF e-Library