Monetary and Macroprudential Policy Coordination Among Multiple Equilibria is popular PDF and ePub book, written by Mr.Itai Agur in 2018-11-02, it is a fantastic choice for those who relish reading online the Business & Economics genre. Let's immerse ourselves in this engaging Business & Economics book by exploring the summary and details provided below. Remember, Monetary and Macroprudential Policy Coordination Among Multiple Equilibria can be Read Online from any device for your convenience.
Monetary and Macroprudential Policy Coordination Among Multiple Equilibria Book PDF Summary
The notion of a tradeoff between output and financial stabilization is based on monetary-macroprudential models with unique equilibria. Using a game theory setup, this paper shows that multiple equilibria lead to qualitatively different results. Monetary and macroprudential authorities have tools that impose externalities on each other's objectives. One of the tools (macroprudential) is coarse, while the other (monetary policy) is unconstrained. We find that this asymmetry always leads to multiple equilibria, and show that under economically relevant conditions the authorities prefer different equilibria. Giving the unconstrained authority a weight on "helping" the constrained authority ("leaning against the wind") now has unexpected effects. The relation between this weight and the difficulty of coordinating is hump-shaped, and therefore a small degree of leaning worsens outcomes on both authorities' objectives.
Detail Book of Monetary and Macroprudential Policy Coordination Among Multiple Equilibria PDF
- Author : Mr.Itai Agur
- Release : 02 November 2018
- Publisher : International Monetary Fund
- ISBN : 9781484380642
- Genre : Business & Economics
- Total Page : 33 pages
- Language : English
- PDF File Size : 17,7 Mb
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