Monetary and Macroprudential Policy Rules in a Model with House Price Booms / / Alasdair Scott, Pau Rabanal, Prakash Kannan

• Record Nr.: UNINA9910818985803321
• Autore: Scott Alasdair
• Pubbl/distr/stampa: Washington, D.C. : , : International Monetary Fund, , 2009
• ISBN: 1-4623-8905-8; 1-282-84448-2; 1-4518-7398-0; 9786612844485; 1-4527-6620-7
• Edizione: [1st ed.]
• Descrizione fisica: 36 p. : ill
• Collana: IMF Working Papers
• Altri autori (Persone): RabanalPau; KannanPrakash
• Disciplina: 338.2934
• Soggetti: Monetary policy - Econometric models; Inflation (Finance); Assets (Accounting) - Prices; Macroeconomics; Inflation; Money and Monetary Policy; Real Estate; Production and Operations Management; Price Level; Deflation; Macroeconomics: Production; Housing Supply and Markets; Monetary Policy, Central Banking, and the Supply of Money and Credit: General; Property & real estate; Monetary economics; Output gap; Housing prices; Credit; Asset prices; Prices; Production; Economic theory; Housing
• Lingua di pubblicazione: Inglese
• Formato: Materiale a stampa
• Livello bibliografico: Monografia
• Note generali: "November 2009."
• Nota di contenuto: Cover Page -- Title Page -- Copyright Page -- Contents -- I. Introduction -- II. A Model for Analyzing House Price Booms -- A. Households -- A.1 Savers -- A.2 Borrowers -- B. Financial Intermediaries -- C. Producers -- C.1 Final goods producers -- C.2 Intermediate goods producers -- D. Closing the Model: Market Clearing Conditions -- III. Policy Regimes -- IV. Calibration -- 1. Parameter Values -- V. Simulation Results -- A. The Performance of Policy Rules in Reaction to Financial Shocks -- 1. Effect of a Financial Shock -- 2. Parameters of Policy Rules in Reaction to Financial Shocks -- 3. Performance of Policy Rules in Reaction to Financial Shocks -- B. The Performance of Policy Rules in Reaction to Productivity Shocks -- 2. Effect of a Productivity Shock -- 4. Parameters of Policy Rules in Reaction to Productivity Shocks -- 5. Performance of Policy Rules in Reaction to Productivity Shocks -- C. Policy Rules with Multiple Shocks -- 3. Optimal Weight on Nominal Credit in the Macroprudential Rule -- VI. Robustness of the Results -- 6. Sensitivity of Parameters of Policy Rules Optimized to Financial Shocks to Changes in Key Parameters -- 7. Sensitivity of Parameters of Policy Rules Optimized to Productivity Shocks to Changes in Key Parameters Figures -- VII. Conclusions -- Appendix: Linearized Conditions -- References -- Footnotes.
• Sommario/riassunto: We argue that a stronger emphasis on macrofinancial risk could provide stabilization benefits. Simulations results suggest that strong monetary reactions to accelerator mechanisms that push up credit growth and asset prices could help macroeconomic stability. In addition, using a macroprudential instrument designed specifically to dampen credit market cycles would also be useful. But invariant and rigid policy responses raise the risk of policy errors that could lower, not raise, macroeconomic stability. Hence, discretion would be required.