Arbeitspapier
Effects of monetary and macro-prudential policies – evidence from inflation targeting economies in the Asia-Pacific region and potential implications for China
We examine the effects of monetary and macroprudential policies in the Asia-Pacific region, where many inflation targeting economies have adopted macroprudential policies in order to safeguard financial stability. Using structural panel vector autoregressions that identify both monetary and macro-prudential policy actions, we show that tighter macroprudential policies used to contain credit growth have also had a significant negative impact on macroeconomic aggregates such as real GDP and the price level. The similar effects of monetary and macroprudential policies may suggest a complementary use of the two policies at normal times. However, they could also create challenges for policy-makers, especially during times when low inflation coincides with buoyant credit growth.
- ISBN
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978-952-323-155-9
- Language
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Englisch
- Bibliographic citation
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Series: BOFIT Discussion Papers ; No. 4/2017
- Classification
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Wirtschaft
Central Banks and Their Policies
Policy Objectives; Policy Designs and Consistency; Policy Coordination
- Event
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Geistige Schöpfung
- (who)
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Kim, Soyoung
Mehrotra, Aaron
- Event
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Veröffentlichung
- (who)
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Bank of Finland, Institute for Economies in Transition (BOFIT)
- (where)
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Helsinki
- (when)
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2017
- Handle
- Last update
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10.03.2025, 11:43 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Kim, Soyoung
- Mehrotra, Aaron
- Bank of Finland, Institute for Economies in Transition (BOFIT)
Time of origin
- 2017
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