Should monetary policy target financial stability?
نویسندگان
چکیده
Monetary policy can promote financial stability and improve household welfare. We consider a macro model with sector in which banks do not actively issue equity, output growth depend on the aggregate level of bank equilibrium is inefficient. rules responding to are ex-ante stabilizing because their effects risk premia decrease likelihood crises boost leverage during downturns. Stability gains from monetary increase welfare whenever macroprudential poorly targeted. If sufficiently well-targeted stability, then should target stability.
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ژورنال
عنوان ژورنال: Review of Economic Dynamics
سال: 2023
ISSN: ['1096-6099', '1094-2025']
DOI: https://doi.org/10.1016/j.red.2022.08.002