The Costs of Macroprudential Deleveraging in a Liquidity Trap /

We examine the effects of various borrower-based macroprudential tools in a New Keynesian environment where both real and nominal interest rates are low. Our model features long-term debt, housing transaction costs and a zero-lower bound constraint on policy rates. We find that the long-term costs,...

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Մատենագիտական մանրամասներ
Հիմնական հեղինակ: Chen, Jiaqian
Այլ հեղինակներ: Finocchiaro, Daria, Linde, Jesper, Walentin, Karl
Ձևաչափ: Ամսագիր
Լեզու:English
Հրապարակվել է: Washington, D.C. : International Monetary Fund, 2020.
Շարք:IMF Working Papers; Working Paper ; No. 2020/089
Առցանց հասանելիություն:Full text available on IMF
Նկարագրություն
Ամփոփում:We examine the effects of various borrower-based macroprudential tools in a New Keynesian environment where both real and nominal interest rates are low. Our model features long-term debt, housing transaction costs and a zero-lower bound constraint on policy rates. We find that the long-term costs, in terms of forgone consumption, of all the macroprudential tools we consider are moderate. Even so, the short-term costs differ dramatically between alternative tools. Specifically, a loan-to-value tightening is more than twice as contractionary compared to loan-to-income tightening when debt is high and monetary policy cannot accommodate.
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Ֆիզիկական նկարագրություն:1 online resource (66 pages)
Ձևաչափ:Mode of access: Internet
ISSN:1018-5941
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