@misc{29023,
title = {Research Insights: Should Financial Stability Considerations Be Included in Monetary Policy Rules or Should They Be Addressed with Separate Financial Policy Rules?},
author = {Carrillo, Julio A. and Mendoza, Enrique G. and Nuguer, Victoria and Roldán-Peña, Jessica},
year = {2020},
doi = {10.18235/0002728},
abstract = {Countries should have two different rules: a monetary policy rule for inefficiency in adjusting prices, and a financial policy rule for inefficiencies originating in financial markets. A two-rule regime entails lower welfare costs than either a Taylor rule, which reacts to inflation, or a Taylor rule augmented with financial considerations. When two rules are used, the Nash equilibrium is better than a Taylor rule or an augmented Taylor rule, but worse than a cooperative equilibrium.},
url = {https://doi.org/10.18235/0002728}
}