Can I read Monetary and Macroprudential Policy Rules in a Model with House Price Booms on EtoBox?
Monetary and Macroprudential Policy Rules in a Model with House Price Booms by Prakash Kannan; Pau Rabanal; Alasdair M. Scott is a Economics, Econometrics and Finance article available to read on EtoBox.
What is Monetary and Macroprudential Policy Rules in a Model with House Price Booms about?
Using a dynamic stochastic general equilibrium (DSGE) model with housing, this paper shows that strong monetary reactions to accelerator mechanisms that push up credit growth and house prices can help macroeconomic stability. In addition, using a macroprudential instrument specifically designed to dampen credit market cycles would also provide stabilization benefits when an economy faces financial sector or housing demand shocks. However, the optimal macroprudential rule under productivity shocks is to not intervene. Therefore, it is crucial to understand the source of house price booms for the design of monetary and macroprudential policy.
Who reads Monetary and Macroprudential Policy Rules in a Model with House Price Booms?
It is typically read by researchers, students, and practitioners in Economics, Econometrics and Finance.
- Author
- Prakash Kannan; Pau Rabanal; Alasdair M. Scott
- Publisher
- Walter de Gruyter GmbH
- Published
- 2012
- Language
- EN
- Field
- Economics, Econometrics and Finance (Social Sciences)