Macroprudential Policy in a Monetary Union

Using a simple New Keynesian model of a monetary union that incorporates financial frictions, we show that country-targeted macroprudential policy could complement a single monetary policy at the union level. In particular, macroprudential policy helps taming financial and economic imbalances in the...

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Bibliographic Details
Main Authors: Dehmej, S. (Author), Gambacorta, L. (Author)
Format: Article
Language:English
Published: Palgrave Macmillan Ltd. 2019
Subjects:
Online Access:View Fulltext in Publisher