Interactions between monetary and macroprudential policies

Alejandro Van der Ghote

Research Bulletin, 2019, vol. 56

Abstract: Should monetary policy be concerned with financial stability? Or do financial supervisory and regulatory policies suffice to achieve this goal? These questions have been prominent in the policy debate since the global financial crisis. To address them, I develop a tractable monetary model in which systemic risk and economic activity both depend on financial conditions. I show that there are benefits from using monetary policy, i.e., interest-rate policies, to enhance financial stability. These benefits are quantitatively moderate, however, and partly offset by costs in terms of inflation variability. JEL Classification: E44, E52, E61

Keywords: Macroprudential policy; Monetary policy; Policy coordination (search for similar items in EconPapers)
Date: 2019-03
Note: 2828013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://www.ecb.europa.eu//pub/economic-research/r ... 6~69778dd7e7.en.html (text/html)
https://www.ecb.europa.eu//pub/economic-research/r ... 26~69778dd7e7.en.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ecb:ecbrbu:2019:0056:

Access Statistics for this article

More articles in Research Bulletin from European Central Bank 60640 Frankfurt am Main, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Official Publications ().