Interactions of monetary and macroprudential policies in a model of the Korean economy : conference paper

Afanasyeva, Elena; Karasulu, Meral

We use a microfounded dynamic stochastic general equilibrium (DSGE) model with banks to study interactions between monetary and macroprudential policies in a small open economy. The model is calibrated/estimated for Korea. Cooperation of monetary and macroprudential policies is optimal under a financial shock. Prolonged periods of monetary accommodation lead to inflationary pressures, lower the effectiveness of macroprudential instrument (loan-to-value ratio) and contribute to further credit growth, increasing vulnerabilities.

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Year of publication:	2013 ; This Version: February 2013
Authors:	Afanasyeva, Elena ; Karasulu, Meral
Published in:	Beiträge zur Jahrestagung des Vereins für Socialpolitik 2013: Wettbewerbspolitik und Regulierung in einer globalen Wirtschaftsordnung Session: Financial stability ; V2
Publisher:	[Kiel : ZBW
Subject:	Monetary Policy \| Macroprudential Policy \| Loan-to-Value Ratio \| Optimal Policy \| New Keynesian Model \| Korea \| Geldpolitik \| Monetary policy \| Finanzmarktaufsicht \| Financial supervision \| Südkorea \| South Korea \| Wirkungsanalyse \| Impact assessment \| Neoklassische Synthese \| Neoclassical synthesis

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Extent:	Online-Ressource (35 S.) graph. Darst.
Conferences:	Jahrestagung des Vereins für Socialpolitik: Wettbewerbspolitik und Regulierung in einer globalen Wirtschaftsordnung : 2013
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Konferenzschrift ; Graue Literatur ; Non-commercial literature
Language:	English
Notes:	Systemvoraussetzungen: Acrobat Reader
Other identifiers:	hdl:10419/79884 [Handle]
Classification:	E58 - Central Banks and Their Policies ; E61 - Policy Objectives; Policy Designs and Consistency; Policy Coordination ; G28 - Government Policy and Regulation ; F41 - Open Economy Macroeconomics ; G21 - Banks; Other Depository Institutions; Mortgages
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://www.econbiz.de/10010340613