IMF paper weighs impact of low rates on instability
Working paper suggests US regulatory framework was ‘weak link’ before the crisis
The main problem with the United States policy framework in the lead up to the financial crisis was the absence of an "effective regulatory framework" for preserving financial stability, research published by the IMF has suggested - as opposed to loose monetary policy after 2002.
In the working paper Does Easing Monetary Policy Increase Financial Instability? Ambrogio Cesa-Bianchi and Alessandro Rebucci consider the interaction between monetary and macro-prudential policies using a model
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