Capital Flows, Financial Intermediation and Macroprudential Policies
Matteo Ghilardi () and
Shanaka J. Peiris ()
Additional contact information
Shanaka J. Peiris: International Monetary Fund
Open Economies Review, 2016, vol. 27, issue 4, 721-746
Abstract This paper develops an open-economy DSGE model with an optimizing banking sector to assess the role of capital flows, macro-financial linkages, and macroprudential policies. The key result is that macroprudential measures can usefully complement monetary policy. Countercyclical macroprudential polices can help reduce macroeconomic volatility and enhance welfare. The results also demonstrate the importance of capital flows and financial stability for business cycle fluctuations as well as the role of supply side financial accelerator effects in the amplification and propagation of shocks.
Keywords: Financial frictions; Capital regulation; Monetary policy (search for similar items in EconPapers)
JEL-codes: E52 E61 F42 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4) Track citations by RSS feed
Downloads: (external link)
http://link.springer.com/10.1007/s11079-016-9389-9 Abstract (text/html)
Access to full text is restricted to subscribers.
Working Paper: Capital Flows, Financial Intermediation and Macroprudential Policies (2014)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:kap:openec:v:27:y:2016:i:4:d:10.1007_s11079-016-9389-9
Ordering information: This journal article can be ordered from
http://www.springer. ... cs/journal/11079/PS2
Access Statistics for this article
Open Economies Review is currently edited by G.S. Tavlas
More articles in Open Economies Review from Springer
Bibliographic data for series maintained by Sonal Shukla ().