Arbeitspapier
The global financial cycle, monetary policies and macroprudential regulations in small, open economies
This paper analyzes the implications of the global financial cycle for conventional and unconventional monetary policies and macroprudential policy in small, open economies such as Canada. The paper starts by summarizing recent work on financial cycles and their growing correlation across borders. The resulting global financial cycle may be followed by a financial crisis that is quite costly. The cycle causes time variation in global risk premia in fixed income, equity and foreign exchange markets. In turn, time-varying global risk premia affect the transmission mechanisms of both conventional and unconventional monetary policies in small, open economies. While there are large costs associated with financial crises, the paper summarizes new work showing that the central banks' leaning against the effects of the global financial cycle would typically be too costly. The paper concludes with some suggestions for the formation of macroprudential policies that are designed to offset the financial imbalances that grow during the boom phase of the cycle.
- Sprache
-
Englisch
- Erschienen in
-
Series: Bank of Canada Staff Working Paper ; No. 2016-38
- Klassifikation
-
Wirtschaft
Monetary Systems; Standards; Regimes; Government and the Monetary System; Payment Systems
Interest Rates: Determination, Term Structure, and Effects
Financial Markets and the Macroeconomy
Monetary Policy
Open Economy Macroeconomics
- Thema
-
International financial markets
Financial stability
Housing
Monetary policy framework
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Bauer, Gregory
Pasricha, Gurnain
Sekkel, Rodrigo
Terajima, Yaz
- Ereignis
-
Veröffentlichung
- (wer)
-
Bank of Canada
- (wo)
-
Ottawa
- (wann)
-
2016
- DOI
-
doi:10.34989/swp-2016-38
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:43 MEZ
Datenpartner
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Bauer, Gregory
- Pasricha, Gurnain
- Sekkel, Rodrigo
- Terajima, Yaz
- Bank of Canada
Entstanden
- 2016
Ähnliche Objekte (12)
Optimal monetary and macroprudential policies
Macroprudential policy with capital buffers
Rollover risk, liquidity and macroprudential regulation
A policy model to analyze macroprudential regulations and monetary policy
Managing risk taking with interest rate policy and macroprudential regulations
A microfounded design of interconnectedness-based Macroprudential policy
An optimal macroprudential policy mix for segmented credit markets
Macroprudential FX regulations: Shifting the snowbanks of FX vulnerability?
Addressing Household Indebtedness: Monetary, Fiscal or Macroprudential Policy?
Sterilized intervention in emerging-market economies: Trends, costs, and risks
Securitization under Asymmetric Information over the Business Cycle
The impact of the global business cycle on small open economies: A FAVAR approach for Canada
Optimal monetary and macroprudential policies
Macroprudential policy with capital buffers
Rollover risk, liquidity and macroprudential regulation
A policy model to analyze macroprudential regulations and monetary policy
Managing risk taking with interest rate policy and macroprudential regulations
A microfounded design of interconnectedness-based Macroprudential policy
An optimal macroprudential policy mix for segmented credit markets
Macroprudential FX regulations: Shifting the snowbanks of FX vulnerability?
Addressing Household Indebtedness: Monetary, Fiscal or Macroprudential Policy?
Sterilized intervention in emerging-market economies: Trends, costs, and risks
Securitization under Asymmetric Information over the Business Cycle
The impact of the global business cycle on small open economies: A FAVAR approach for Canada
Optimal monetary and macroprudential policies
Macroprudential policy with capital buffers
Rollover risk, liquidity and macroprudential regulation
A policy model to analyze macroprudential regulations and monetary policy
Managing risk taking with interest rate policy and macroprudential regulations
A microfounded design of interconnectedness-based Macroprudential policy
An optimal macroprudential policy mix for segmented credit markets
Macroprudential FX regulations: Shifting the snowbanks of FX vulnerability?
Addressing Household Indebtedness: Monetary, Fiscal or Macroprudential Policy?
Sterilized intervention in emerging-market economies: Trends, costs, and risks
Securitization under Asymmetric Information over the Business Cycle