Title Effects of monetary and macroprudential policies on financial conditions : evidence from the United States / prepared by Aleksandra Zdzienicka, Sally Chen, Federico Diaz Kalan, Stefan Laseen and Katsiaryna Svirydzenka

Published [Washington, D.C.] : International Monetary Fund, 2015 ©2015

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Description 1 online resource (29 pages) : color illustrations Series IMF working paper ; WP/15/288 IMF working paper ; WP/15/288. Summary The Global Financial Crisis has reopened discussions on the role of the monetary policy in preserving financial stability. Determining whether monetary policy affects financial variables domestically---especially compared to the effects of macroprudential policies--- and across borders, is crucial in this context. This paper looks into these issues using U.S. exogenous monetary policy shocks and macroprudential policy measures. Estimates indicate that monetary policy shocks have significant and persistent effects on financial conditions and can attenuate long-term financial instability. In contrast, the impact of macroprudential policy measures is generally more immediate but shorter-lasting. Also, while an exogenous increase in U.S. monetary policy rates tends to reduce credit and house prices in other countries---with the effects varying with country-specific characteristics---an increase driven by improved U.S. economic conditions tends to have the opposite effect. Finally, we do not find evidence of cross-border spillover effects associated with U.S. macroprudential policies. --Abstract Notes "Prepared by Aleksandra Zdzienicka,." "December 2015." "Strategy, Policy, and Review Department." Bibliography Includes bibliographical references (pages 23-26) Notes Online resource; title from pdf title page (IMF.org Web site, viewed January 4, 2016) Subject Monetary policy -- United States -- Econometric models Financial risk management -- United States -- Econometric models Financial crises -- United States -- Prevention -- Econometric models Monetary policy -- Econometric models. United States. Form Electronic book Author Zdzienicka, Aleksandra, (IMF staff) Chen, Sally F. (Sally Fangnan), 1973- (IMF staff) Diaz Kalan, Federico, (IMF staff) Laséen, Stefan, (IMF staff) Svirydzenka, Katsiaryna. International Monetary Fund. Strategy, Policy, and Review Department. ISBN 1513519158 9781513519159 ISSN 1018-5941

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