Read Will Macroprudential Policy Counteract Monetary Policy's Effects on Financial Stability?

Will Macroprudential Policy Counteract Monetary Policy's Effects on Financial Stability?

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Description:How does monetary policy impact upon macroprudential regulation? This paper models monetary policy's transmission to bank risk taking, and its interaction with a regulator's optimization problem. The regulator uses its macroprudential tool, a leverage ratio, to maintain financial stability, while taking account of the impact on credit provision. A change in the monetary policy rate tilts the regulator's entire trade-off. We show that the regulator allows interest rate changes to partly "pass through" to bank soundness by not neutralizing the risk-taking channel of monetary policy. Thus, monetary policy affects financial stability, even in the presence of macroprudential regulation.We have made it easy for you to find a PDF Ebooks without any digging. And by having access to our ebooks online or by storing it on your computer, you have convenient answers with Will Macroprudential Policy Counteract Monetary Policy's Effects on Financial Stability?. To get started finding Will Macroprudential Policy Counteract Monetary Policy's Effects on Financial Stability?, you are right to find our website which has a comprehensive collection of manuals listed.
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Pages: 23

Format: PDF, EPUB & Kindle Edition

Publisher: International Monetary Fund

Release: 2015

ISBN: 1513548255

Description: How does monetary policy impact upon macroprudential regulation? This paper models monetary policy's transmission to bank risk taking, and its interaction with a regulator's optimization problem. The regulator uses its macroprudential tool, a leverage ratio, to maintain financial stability, while taking account of the impact on credit provision. A change in the monetary policy rate tilts the regulator's entire trade-off. We show that the regulator allows interest rate changes to partly "pass through" to bank soundness by not neutralizing the risk-taking channel of monetary policy. Thus, monetary policy affects financial stability, even in the presence of macroprudential regulation.We have made it easy for you to find a PDF Ebooks without any digging. And by having access to our ebooks online or by storing it on your computer, you have convenient answers with Will Macroprudential Policy Counteract Monetary Policy's Effects on Financial Stability?. To get started finding Will Macroprudential Policy Counteract Monetary Policy's Effects on Financial Stability?, you are right to find our website which has a comprehensive collection of manuals listed.
Our library is the biggest of these that have literally hundreds of thousands of different products represented.

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Will Macroprudential Policy Counteract Monetary Policy's Effects on Financial Stability?

Will Macroprudential Policy Counteract Monetary Policy's Effects on Financial Stability?

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