Arbeitspapier

Coordinating monetary and financial regulatory policies

How to conduct macro-prudential regulation? How to coordinate monetary policy and macro-prudential policy? To address these questions, I develop a continuous-time New Keynesian economy in which a financial intermediary sector is subject to a leverage constraint. Coordination between monetary and macro-prudential policies helps to reduce the risk of entering into a financial crisis and speeds up exit from the crisis. The downside of coordination is variability in inflation and in the employment gap.

ISBN
978-92-899-3260-8
Language
Englisch

Bibliographic citation
Series: ECB Working Paper ; No. 2155

Classification
Wirtschaft
Price Level; Inflation; Deflation
Business Fluctuations; Cycles
Financial Markets and the Macroeconomy
Monetary Policy
Policy Objectives; Policy Designs and Consistency; Policy Coordination
Financial Crises
Subject
Monetary Policy
Macro-prudential Policy
Policy Coordination

Event
Geistige Schöpfung
(who)
Van der Ghote, Alejandro
Event
Veröffentlichung
(who)
European Central Bank (ECB)
(where)
Frankfurt a. M.
(when)
2018

DOI
doi:10.2866/35826
Handle
Last update
10.03.2025, 11:42 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Van der Ghote, Alejandro
  • European Central Bank (ECB)

Time of origin

  • 2018

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