Leaning Against the Wind and the Timing of Monetary Policy:
If monetary policy is to aim also at financial stability, how would it change? To analyze this question, this paper develops a general-form framework. Financial stability objectives are shown to make monetary policy more aggressive: in reaction to negative shocks, cuts are deeper but shorter-lived t...
Gespeichert in:
1. Verfasser: | |
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Format: | Elektronisch E-Book |
Sprache: | English |
Veröffentlicht: |
Washington, D.C
International Monetary Fund
2013
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Schriftenreihe: | IMF Working Papers
Working Paper No. 13/86 |
Online-Zugang: | UBW01 UEI01 LCO01 SBR01 UER01 SBG01 UBG01 FAN01 UBT01 FKE01 UBY01 UBA01 FLA01 UBM01 UPA01 UBR01 FHA01 FNU01 BSB01 TUM01 Volltext |
Zusammenfassung: | If monetary policy is to aim also at financial stability, how would it change? To analyze this question, this paper develops a general-form framework. Financial stability objectives are shown to make monetary policy more aggressive: in reaction to negative shocks, cuts are deeper but shorter-lived than otherwise. By keeping cuts brief, monetary policy tightens as soon as bank risk appetite heats up. Within this shorter time span, cuts must then be deeper than otherwise to also achieve standard objectives. Finally, we analyze how robust this result is to the presence of a bank regulatory tool, and provide a parameterized example |
Beschreibung: | 1 Online-Ressource (29 p) |
ISBN: | 1484378385 9781484378380 |
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spelling | Agur, Itai Verfasser aut Leaning Against the Wind and the Timing of Monetary Policy Agur, Itai Washington, D.C International Monetary Fund 2013 1 Online-Ressource (29 p) txt rdacontent c rdamedia cr rdacarrier IMF Working Papers Working Paper No. 13/86 If monetary policy is to aim also at financial stability, how would it change? To analyze this question, this paper develops a general-form framework. Financial stability objectives are shown to make monetary policy more aggressive: in reaction to negative shocks, cuts are deeper but shorter-lived than otherwise. By keeping cuts brief, monetary policy tightens as soon as bank risk appetite heats up. Within this shorter time span, cuts must then be deeper than otherwise to also achieve standard objectives. Finally, we analyze how robust this result is to the presence of a bank regulatory tool, and provide a parameterized example Online-Ausg Demertzis, Maria Sonstige oth http://elibrary.imf.org/view/IMF001/20409-9781484378380/20409-9781484378380/20409-9781484378380.xml Verlag URL des Erstveröffentlichers Volltext |
spellingShingle | Agur, Itai Leaning Against the Wind and the Timing of Monetary Policy |
title | Leaning Against the Wind and the Timing of Monetary Policy |
title_auth | Leaning Against the Wind and the Timing of Monetary Policy |
title_exact_search | Leaning Against the Wind and the Timing of Monetary Policy |
title_exact_search_txtP | Leaning Against the Wind and the Timing of Monetary Policy |
title_full | Leaning Against the Wind and the Timing of Monetary Policy Agur, Itai |
title_fullStr | Leaning Against the Wind and the Timing of Monetary Policy Agur, Itai |
title_full_unstemmed | Leaning Against the Wind and the Timing of Monetary Policy Agur, Itai |
title_short | Leaning Against the Wind and the Timing of Monetary Policy |
title_sort | leaning against the wind and the timing of monetary policy |
url | http://elibrary.imf.org/view/IMF001/20409-9781484378380/20409-9781484378380/20409-9781484378380.xml |
work_keys_str_mv | AT aguritai leaningagainstthewindandthetimingofmonetarypolicy AT demertzismaria leaningagainstthewindandthetimingofmonetarypolicy |