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dc.contributor.authorKockerols, Thore
dc.contributor.authorKok, Christoffer
dc.date.accessioned2019-01-17T09:08:09Z
dc.date.available2019-01-17T09:08:09Z
dc.date.issued2019
dc.identifier.isbn978-82-8379-067-2
dc.identifier.issn1502-8190
dc.identifier.urihttp://hdl.handle.net/11250/2581011
dc.description.abstractShould monetary policy lean against financial stability risks? This has been a subject of fierce debate over the last decades. We contribute to the debate about “leaning against the wind” (LAW) along three lines. First, we evaluate the cost and benefits of LAW using the Svensson (2017) framework for the euro area and find that the costs outweigh the benefits. Second, we extend the framework to address a critique that Svensson does not consider the lower frequency financial cycle. Third, we use this extended framework to assess the costs and benefits of monetary and macroprudential policy. We find that macroprudential policy has net marginal benefits in addressing risks to financial stability in the euro area, whereas monetary policy has net marginal costs. This would suggest that an active use of macroprudential policies targeting financial stability risks would alleviate the burden on monetary policy to “lean against the wind”.nb_NO
dc.language.isoengnb_NO
dc.publisherNorges Banknb_NO
dc.relation.ispartofseriesWorking Paper;1/2019
dc.rightsAttribution-NonCommercial-NoDerivatives 4.0 Internasjonal*
dc.rights.urihttp://creativecommons.org/licenses/by-nc-nd/4.0/deed.no*
dc.subjectJEL: E58nb_NO
dc.subjectJEL: G01nb_NO
dc.subjectleaning against the windnb_NO
dc.subjectmacroprudential policynb_NO
dc.subjectfinancial cyclenb_NO
dc.title“Leaning Against the Wind”, Macroprudential Policy and the Financial Cyclenb_NO
dc.typeWorking papernb_NO
dc.description.versionpublishedVersionnb_NO
dc.subject.nsiVDP::Samfunnsvitenskap: 200::Økonomi: 210::Samfunnsøkonomi: 212nb_NO
dc.source.pagenumber31nb_NO


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Attribution-NonCommercial-NoDerivatives 4.0 Internasjonal
Except where otherwise noted, this item's license is described as Attribution-NonCommercial-NoDerivatives 4.0 Internasjonal