Countercyclical macro prudential policies in a supporting role to monetary policy / prepared by Papa N'Diaye.

This 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...

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Bibliographic Details
Main Author: N'Diaye, Papa M'B. P. (Papa M'Bagnick Paté) (Author)
Corporate Author: International Monetary Fund. Asia and Pacific Department
Format: eBook
Language:English
Published: [Washington, D.C.] : International Monetary Fund, ©2009.
Series:IMF working paper ; WP/09/257.
Subjects:
Online Access:Click for online access

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100 1 |a N'Diaye, Papa M'B. P.  |q (Papa M'Bagnick Paté),  |e author.  |1 https://id.oclc.org/worldcat/entity/E39PCjJf6XPP3cQbDpHgXhbcfq 
245 1 0 |a Countercyclical macro prudential policies in a supporting role to monetary policy /  |c prepared by Papa N'Diaye. 
260 |a [Washington, D.C.] :  |b International Monetary Fund,  |c ©2009. 
300 |a 1 online resource (22 pages) :  |b illustrations (some color) 
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490 1 |a IMF working paper ;  |v WP/09/257 
504 |a Includes bibliographical references (page 22). 
520 3 |a This 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. 
588 0 |a Print version record. 
505 0 |a 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. 
506 |3 Use copy  |f Restrictions unspecified  |2 star  |5 MiAaHDL 
533 |a Electronic reproduction.  |b [Place of publication not identified]:  |c HathiTrust Digital Library.  |d 2024.  |5 MiAaHDL 
538 |a Master and use copy. Digital master created according to Benchmark for Faithful Digital Reproductions of Monographs and Serials, Version 1. Digital Library Federation, December 2002.  |u http://purl.oclc.org/DLF/benchrepro0212  |5 MiAaHDL 
583 1 |a digitized  |c 2024.  |h HathiTrust Digital Library  |l committed to preserve  |2 pda  |5 MiAaHDL 
650 0 |a Monetary policy. 
650 0 |a Fiscal policy. 
650 7 |a Fiscal policy  |2 fast 
650 7 |a Monetary policy  |2 fast 
710 2 |a International Monetary Fund.  |b Asia and Pacific Department. 
776 0 8 |i Print version:  |a Ndiaye, Papa.  |t Countercyclical macro prudential policies in a supporting role to monetary policy.  |d [Washington, DC] : International Monetary Fund (IMF), ©2009  |w (OCoLC)587446153 
830 0 |a IMF working paper ;  |v WP/09/257. 
856 4 0 |u https://ebookcentral.proquest.com/lib/holycrosscollege-ebooks/detail.action?docID=1605979  |y Click for online access 
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