| Description |
1 online resource (74 pages) : illustrations |
| Series |
IMF Working Papers, 1018-5941 ; WP/16/3 |
|
IMF working paper ; WP/16/3.
|
| Summary |
'Leaning against the wind' (LAW) with a higher monetary policy interest rate may have benefits in terms of lower real debt growth and associated lower probability of a financial crisis but has costs in terms of higher unemployment and lower inflation, importantly including a higher cost of a crisis when the economy is weaker. For existing empirical estimates, costs exceed benefits by a substantial margin, even if monetary policy is nonneutral and permanently affects real debt. Somewhat surprisingly, less effective macroprudential policy and generally a credit boom, with resulting higher probability, severity, or duration of a crisis, increases costs of LAW more than benefits, thus further strengthening the strong case against LAW |
| Notes |
"January 2016." |
| Bibliography |
Includes bibliographical references |
| Notes |
Print version record |
| Subject |
Monetary policy -- Econometric models
|
|
Monetary policy -- Econometric models
|
| Form |
Electronic book
|
| Author |
Svensson, Lars E. O., author.
|
| ISBN |
1498314783 |
|
9781498314787 |
| ISSN |
1018-5941 |
|
