Macroprudential policy and monetary policy
Title: Macroprudential policy and monetary policy
Author: PORTES, Richard
Citation: Dirk SCHOENMAKER (ed.), Macroprudentialism : a VoxEU.org eBook, London : CEPR Press, 2014, Open Access e-books, pp. 47-59
External link: http://www.voxeu.org/content/macroprudentialism
There is a possible conflict between monetary policy and financial stability. This chapter discusses whether macroprudential policies could alleviate that conflict. Macroprudential policies affect financial stability and thus monetary conditions. There is no consensus, however, on whether monetary and macroprudential policies are complements or substitutes and how they should best be conducted. If the political constraints on macroprudential policies are binding, there may be a need for a compromise.
Type of Access: openAccess
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