05119oam 22011534 450 991078822300332120230721045720.01-4623-5878-097866128445151-4527-0969-61-282-84451-21-4518-7403-0(CKB)3170000000055388(EBL)1605979(SSID)ssj0000949341(PQKBManifestationID)11597094(PQKBTitleCode)TC0000949341(PQKBWorkID)10996013(PQKB)10556357(OCoLC)680613464(MiAaPQ)EBC1605979(IMF)WPIEE2009257(EXLCZ)99317000000005538820020129d2009 uf 0engurcn|||||||||txtccrCountercyclical Macro Prudential Policies in a Supporting Role to Monetary Policy /Papa N'DiayeWashington, D.C. :International Monetary Fund,2009.1 online resource (36 p.)IMF Working PapersDescription based upon print version of record.1-4519-1818-6 Includes bibliographical references.Cover Page; Title Page; Copyright Page; Contents; I. Introduction; II. Overview of the CCA; III. Model Overview; A. Aggregate Demand Equation; B. Inflation; C. Core Inflation-Phillips curve; D. Okun's Law Relationship; E. Labor Income; F. Exchange Rate; G. Monetary Policy Rule; H. Yield Curve and Term Structure; I. Spreads and Balance Sheets; J. Uncertainty; K. Debt Dynamics; L. Financial Regulations; M. Equity; N. The Supply Side; IV. Illustrative Model Simulations; V. Conclusion; References; FootnotesThis paper explores how prudential regulations can support monetary policy in reducing output fluctuations while maintaining financial stability. It uses a new framework that blends a standard model for monetary policy analysis with a contingent claims model of financial sector vulnerabilities. The results suggest that binding countercyclical prudential regulations can help reduce output fluctuations and lessen the risk of financial instability. More specifically, countercyclical rules such as countercyclical capital adequacy rules, can allow monetary authorities to achieve the same output and inflation objectives but with smaller adjustments in interest rates. The countercyclical rules can help stem swings in asset prices, lean against a financial accelerator process, and thereby help to lower risks of macroeconomic and financial instability. In economies with fixed exchange rates, where countercyclical monetary policy is not possible, prudential regulations can provide a useful mechanism for mitigating a run-up in asset prices and for promoting output stability.IMF Working Papers; Working Paper ;No. 2009/257Monetary policyAssets (Accounting)AccountingimfBanks and BankingimfFinancial Risk ManagementimfInflationimfMacroeconomicsimfPrice LevelimfDeflationimfInternational Financial MarketsimfBanksimfDepository InstitutionsimfMicro Finance InstitutionsimfMortgagesimfPublic AdministrationimfPublic Sector Accounting and AuditsimfFinanceimfBankingimfFinancial reporting, financial statementsimfAsset pricesimfAsset valuationimfFinancial statementsimfPricesimfAsset-liability managementimfBanks and bankingimfFinance, PublicimfUnited StatesimfMonetary policy.Assets (Accounting)AccountingBanks and BankingFinancial Risk ManagementInflationMacroeconomicsPrice LevelDeflationInternational Financial MarketsBanksDepository InstitutionsMicro Finance InstitutionsMortgagesPublic AdministrationPublic Sector Accounting and AuditsFinanceBankingFinancial reporting, financial statementsAsset pricesAsset valuationFinancial statementsPricesAsset-liability managementBanks and bankingFinance, PublicN'Diaye Papa1509571International Monetary Fund.DcWaIMFBOOK9910788223003321Countercyclical Macro Prudential Policies in a Supporting Role to Monetary Policy3741534UNINA