Dichotomy between macroprudential policy and monetary policy on credit and inflation

This paper compares macroprudential policy and monetary policy using a simple New Keynesian model with credit. Macroprudential policy is effective in stabilizing credit with limited impact on inflation. Monetary policy stabilizes inflation, but is ‘too blunt’ for credit stabilization.

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Year of publication:	2014
Authors:	Suh, Hyunduk
Published in:	Economics Letters. - Elsevier, ISSN 0165-1765. - Vol. 122.2014, 2, p. 144-149
Publisher:	Elsevier
Subject:	Macroprudential policy \| Monetary policy \| New Keynesian economics model

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Type of publication:	Article
Classification:	E44 - Financial Markets and the Macroeconomy ; E52 - Monetary Policy (Targets, Instruments, and Effects) ; E59 - Monetary Policy, Central Banking and the Supply of Money and Credit. Other
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010743668