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The interaction between macroprudential and monetary policies: The cases of Norway and Sweden

Jin Cao, Valeriya Dinger, Anna Grodecka-Messi, Ragnar Juelsrud and Xin Zhang

No 2020/8, Working Paper from Norges Bank

Abstract: To shed light on the interaction between macroprudential and monetary policies, we study the inward transmission of foreign monetary policy in conjunction with domestic macroprudential and monetary policies in Norway and Sweden. Using detailed bank-level data we show how Norwegian and Swedish banks' lending reacts to monetary policy surprises arising abroad, controlling for the domestic macroprudential stance and the interaction between monetary and macroprudential policies. In both countries, the domestic macroprudential policy helps mitigate the effects arising after foreign monetary surprises.

Keywords: monetary policy; macroprudential policy; policy interactions; bank lending; inward transmission; international bank lending channel (search for similar items in EconPapers)
JEL-codes: E43 E52 E58 F34 F42 G21 G28 (search for similar items in EconPapers)
Pages: 36 pages
Date: 2020-07-04
New Economics Papers: this item is included in nep-eec, nep-mac, nep-mon and nep-opm
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https://hdl.handle.net/11250/2677149

Related works:
Journal Article: The interaction between macroprudential and monetary policies: The cases of Norway and Sweden (2021) Downloads
Working Paper: The interaction between macroprudential and monetary policies: The cases of Norway and Sweden (2020) Downloads
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Persistent link: https://EconPapers.repec.org/RePEc:bno:worpap:2020_08

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