Monetary and macroprudential policies under rules and discretion

Working papers set out research in progress by our staff, with the aim of encouraging comments and debate.
Published on 21 December 2017

Working Paper No. 702
by Lien Laureys and Roland Meeks

We study the policy design problem faced by central banks with both monetary and macroprudential objectives. We find that a time-consistent policy is often superior to a widely studied class of simple monetary and macroprudential rules. Better outcomes result when interest rates adjust to macroprudential policy in an augmented monetary policy rule.

PDFWorking Paper No. 702 

Other papers

Publication // Working Paper

Food prices matter most: sensitive household...

Food prices matter most: sensitive household inflation expectations
Publication // Working Paper

It is all about demand and supply: a dualistic...

It is all about demand and supply: a dualistic view of the euro area business cycle
Publication // Working Paper

Relationship lending and monetary policy...

Relationship lending and monetary policy pass-through
Publication // Working Paper

Agent-based modeling at central banks: recent...

Agent-based modeling at central banks: recent developments and new challenges
View more

Back to top