On the use of Monetary and Macroprudential Policies for Small Open Economies - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook On the use of Monetary and Macroprudential Policies for Small Open Economies write by Mr.F. Gulcin Ozkan. This book was released on 2014-06-24. On the use of Monetary and Macroprudential Policies for Small Open Economies available in PDF, EPUB and Kindle. We explore optimal monetary and macroprudential policy rules for a small open economy. Delegating 'lean against the wind' squarely to macroprudential policy provides a more robust policy mix to shock uncertainty—(i) if macroprudential measures exist, there are no significant welfare gains from monetary policy reacting to credit growth under a financial shock; and (ii) monetary responses to financial markets could generate bigger welfare losses than macroprudential responses under different shocks. The source of outstanding liabilities also plays a role in the choice of policy instrument— macroprudential policies are particularly effective for emerging markets where foreign borrowing is sizeable.
The Use and Effectiveness of Macroprudential Policies
The Use and Effectiveness of Macroprudential Policies - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook The Use and Effectiveness of Macroprudential Policies write by Mr.Eugenio Cerutti. This book was released on 2015-03-17. The Use and Effectiveness of Macroprudential Policies available in PDF, EPUB and Kindle. Using a recent IMF survey and expanding on previous studies, we document the use of macroprudential policies for 119 countries over the 2000-13 period, covering many instruments. Emerging economies use macroprudential policies most frequently, especially foreign exchange related ones, while advanced countries use borrower-based policies more. Usage is generally associated with lower growth in credit, notably in household credit. Effects are less in financially more developed and open economies, however, and usage comes with greater cross-border borrowing, suggesting some avoidance. And while macroprudential policies can help manage financial cycles, they work less well in busts.
Interaction of Monetary and Macroprudential Policies in Developing Economies
Interaction of Monetary and Macroprudential Policies in Developing Economies - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Interaction of Monetary and Macroprudential Policies in Developing Economies write by Allan Wright. This book was released on 2016. Interaction of Monetary and Macroprudential Policies in Developing Economies available in PDF, EPUB and Kindle. Our paper addresses the issue of the interaction between monetary and macroprudential policies in small open economies for different exchange rate regimes. The need for macroprudential policy arises from exacerbated macroeconomic fluctuations due to frictions in the financial system as in Bernanke, Gertler and Gilchrist (1999). Understanding these dynamics in developing nations has been even more important after the most recent events of the Great Recession. Policy makers within the scrutinized economies will see the exact magnitude of shocks caused by changes in financial frictions, monetary and macroprudential policy. Exchange rate considerations are also brought to the fore, by assessing the effects of these policies on two emerging economies from the Caribbean with differing monetary policy frameworks. Despite differences between flexible and fear of floating exchange rate regimes, macroprudential policies implementation help mitigate the effects of credit supply shocks affecting regional economies.
Macroprudential Policy - An Organizing Framework - Background Paper
Macroprudential Policy - An Organizing Framework - Background Paper - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Macroprudential Policy - An Organizing Framework - Background Paper write by International Monetary Fund. Monetary and Capital Markets Department. This book was released on 2011-03-14. Macroprudential Policy - An Organizing Framework - Background Paper available in PDF, EPUB and Kindle. MCM conducted a survey in December 2010 to take stock of international experiences with financial stability and the evolving macroprudential policy framework. The survey was designed to seek information in three broad areas: the institutional setup for macroprudential policy, the analytical approach to systemic risk monitoring, and the macroprudential policy toolkit. The survey was sent to 63 countries and the European Central Bank (ECB), including all countries in the G-20 and those subject to mandatory Financial Sector Assessment Programs (FSAPs). The target list is designed to cover a broad range of jurisdictions in all regions, but more weight is given to economies that are systemically important (see Annex for details). The response rate is 80 percent. This note provides a summary of the survey’s main findings.
Informality, Frictions, and Macroprudential Policy
Informality, Frictions, and Macroprudential Policy - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Informality, Frictions, and Macroprudential Policy write by Moez Ben Hassine. This book was released on 2019-11-27. Informality, Frictions, and Macroprudential Policy available in PDF, EPUB and Kindle. We analyze the effects of macroprudential policies through the lens of an estimated dynamic stochastic general equilibrium (DSGE) model tailored to developing markets. In particular, we explicitly introduce informality in the labor and goods markets within a small open economy embedding financial frictions, nominal and real rigidities, labor search and matching, and an explicit banking sector. We use the estimated version of the model to run welfare analysis under optimized monetary and macroprudential rules. Results show that although informality reduces the efficiency of macroprudential policies following a convex fashion, combining the latter with an inflation targeting objective could be beneficial.
