Dichotomy between macroprudential policy and monetary policy on credit and inflation

Hyunduk Suh

Economics Letters, 2014, vol. 122, issue 2, 144-149

Abstract: This paper compares macroprudential policy and monetary policy using a simple New Keynesian model with credit. Macroprudential policy is effective in stabilizing credit with limited impact on inflation. Monetary policy stabilizes inflation, but is ‘too blunt’ for credit stabilization.

Keywords: Macroprudential policy; Monetary policy; New Keynesian economics model (search for similar items in EconPapers)
JEL-codes: E44 E52 E59 (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (33)

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Working Paper: Dichotomy between macroprudential policy and monetary policy on credit and inflation (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:122:y:2014:i:2:p:144-149

DOI: 10.1016/j.econlet.2013.11.012

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