Nature of shock explains linkages between monetary and macro-pru policies
Response to countercyclical capital buffer depends on nature of shocks
The monetary policy response to the introduction of a countercyclical capital buffer depends on the nature of shocks driving economic fluctuations, according to an article in the Sveriges Riksbank's latest Economic Review.
The linkages between monetary and macro-prudential policies, by Magnus Jonsson and Kevin Moran, studies the linkages between monetary and macro-prudential policies in a dynamic general equilibrium model, where macro-prudential policy is exemplified by a countercyclical capital
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