Cost-Benefit Analysis of Leaning Against the Wind

Cost-Benefit Analysis of Leaning Against the Wind
Author :
Publisher : International Monetary Fund
Total Pages : 76
Release :
ISBN-10 : 9781498314787
ISBN-13 : 1498314783
Rating : 4/5 (87 Downloads)

Book Synopsis Cost-Benefit Analysis of Leaning Against the Wind by : Mr.Lars E. O. Svensson

Download or read book Cost-Benefit Analysis of Leaning Against the Wind written by Mr.Lars E. O. Svensson and published by International Monetary Fund. This book was released on 2016-01-11 with total page 76 pages. Available in PDF, EPUB and Kindle. Book excerpt: “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.


Cost-Benefit Analysis of Leaning Against the Wind Related Books

Cost-Benefit Analysis of Leaning Against the Wind
Language: en
Pages: 76
Authors: Mr.Lars E. O. Svensson
Categories: Business & Economics
Type: BOOK - Published: 2016-01-11 - Publisher: International Monetary Fund

DOWNLOAD EBOOK

“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 proba
Cost-Benefit Analysis of Leaning Against the Wind
Language: en
Pages: 76
Authors: Mr.Lars E. O. Svensson
Categories: Business & Economics
Type: BOOK - Published: 2016-01-11 - Publisher: International Monetary Fund

DOWNLOAD EBOOK

“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 proba
Cost-Benefit Analysis of Leaning Against the Wind
Language: en
Pages: 77
Authors: Lars Svensson
Categories:
Type: BOOK - Published: 2016 - Publisher:

DOWNLOAD EBOOK

'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 probabili
Leaning Against the Wind: A Cost-Benefit Analysis for an Integrated Policy Framework
Language: en
Pages: 59
Authors: Mr.Luis Brandao-Marques
Categories: Business & Economics
Type: BOOK - Published: 2020-07-07 - Publisher: International Monetary Fund

DOWNLOAD EBOOK

This paper takes a new approach to assess the costs and benefits of using different policy tools—macroprudential, monetary, foreign exchange interventions, an
Liquidity Ratios as Monetary Policy Tools: Some Historical Lessons for Macroprudential Policy
Language: en
Pages: 48
Authors: Eric Monnet
Categories: Business & Economics
Type: BOOK - Published: 2019-08-16 - Publisher: International Monetary Fund

DOWNLOAD EBOOK

This paper explores what history can tell us about the interactions between macroprudential and monetary policy. Based on numerous historical documents, we show