The interaction between macroprudential and monetary policies : the cases of Norway and Sweden

Jin Cao, Valeriya Dinger, Anna Grodecka-Messi, Ragnar Juelsrud, Xin Zhang

To shed light on the interaction between macroprudential and monetary policies, we study the inward transmission of foreign monetary policy in conjunction with domestic macroprudential and monetary policies in Norway and Sweden. Using detailed bank-level data we show how Norwegian and Swedish banks' lending reacts to monetary policy surprises arising abroad, controlling for the domestic macroprudential stance and the interaction between monetary and macroprudential policies. In both countries, the domestic macroprudential policy helps mitigate the effects arising after foreign monetary surprises.

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Year of publication:	[2020]
Authors:	Cao, Jin ; Dinger, Valeriya ; Grodecka-Messi, Anna ; Juelsrud, Ragnar Enger ; Zhang, Xin
Publisher:	Oslo : Norges Bank
Subject:	monetary policy \| macroprudential policy \| policy interactions \| bank lending \| inward transmission \| international bank lending channel \| Geldpolitik \| Monetary policy \| Schweden \| Sweden \| Finanzmarktaufsicht \| Financial supervision \| Kreditgeschäft \| Bank lending \| Norwegen \| Norway \| Geldpolitische Transmission \| Monetary transmission \| Internationale Bank \| International bank