01696cas a2200241 a 4500 AALejournalIMF020278 230101c9999 xx r poo 0 0eng d 5.00 USD 9781498339506 2663-3493 BD-DhAAL BD-DhAAL International Monetary Fund. The Interaction of Monetary and Macroprudential Policies. Washington, D.C. : International Monetary Fund, 2012. 1 online resource (35 pages) Policy 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 The recent crisis showed that price stability does not guarantee macroeconomic stability. In several countries, dangerous financial imbalances developed under low inflation and small output gaps. To ensure macroeconomic stability, policy has to include financial stability as an additional objective. But a new objective demands new tools: macroprudential tools that can target specific sources of financial imbalances (something monetary policy is not well suited to do). Effective macroprudential policies (which include a range of constraints on leverage and the composition of balance sheets) could then contain risks ex ante and help build buffers to absorb shocks ex post. Mode of access: Internet Policy Papers; Policy Paper ; No. 2012/107 Full text available on IMF http://elibrary.imf.org/view/journals/007/2012/107/007.2012.issue-107-en.xml IMF e-Library