Princeton University Library Catalog

Macroprudential and Monetary Policy Interactions in a DSGE Model for Sweden [electronic resource] / Jiaqian Chen.

Author:
Chen, Jiaqian [Browse]
Format:
Book
Language:
English
Published/​Created:
[Washington, D.C.: International Monetary Fund, 2016]
Description:
1 online resource (58 p.)
Series:
IMF Working Papers [More in this series]
Summary note:
We analyse the effects of macroprudential and monetary policies and their interactions using an estimated dynamic stochastic general equilibrium (DSGE) model tailored to Sweden. Households face a ceiling on their loan-to-value ratio and must amortize their mortgages. The government grants mortgage interest payment deductions. Lending rates are affected by mortgage risk weights. We find that demand-side macroprudential measures are more effective in curbing household debt ratios than monetary policy, and they are less costly in terms of foregone consumption. A tighter macroprudential stance is also found to be welfare improving, by promoting lower consumption volatility in response to shocks, especially when using a combination of macroprudential instruments.
Source of description:
Description based on print version record.
ISBN:
1475546548 :
Doi:
  • 10.5089/9781475546545.001
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