Cover Image
Read Now

Monetary and Macroprudential Policy Rules in a Model with House Price Booms

We argue that a stronger emphasis on macrofinancial risk could provide stabilization benefits. Simulations results suggest that strong monetary reactions to accelerator mechanisms that push up credit growth and asset prices could help macroeconomic stability. In addition, using a macroprudential ins...

Full description

Bibliographic Details
Main Author: Scott, Alasdair
Other Authors: Rabanal, Pau, Kannan, Prakash
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 2009
Series:IMF Working Papers
Subjects:
Inflation
Credit
Real Estate
Output Gap
Monetary Economics
Deflation
Housing Supply And Markets
Monetary Policy, Central Banking, And The Supply Of Money And Credit: General
Housing; Prices
Production; Economic Theory
Asset Prices
Macroeconomics: Production
Property & Real Estate
Price Level
Prices
Macroeconomics
Money And Monetary Policy
Housing Prices
Production And Operations Management
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
Description
Summary:We argue that a stronger emphasis on macrofinancial risk could provide stabilization benefits. Simulations results suggest that strong monetary reactions to accelerator mechanisms that push up credit growth and asset prices could help macroeconomic stability. In addition, using a macroprudential instrument designed specifically to dampen credit market cycles would also be useful. But invariant and rigid policy responses raise the risk of policy errors that could lower, not raise, macroeconomic stability. Hence, discretion would be required
Physical Description:36 pages
ISBN:9781451873986

Similar Items