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| dc.title | Research Insights: Should Financial Stability Considerations Be Included in Monetary Policy Rules or Should They Be Addressed with Separate Financial Policy Rules? |
| dc.contributor.author | Carrillo, Julio A. |
| dc.contributor.author | Mendoza, Enrique G. |
| dc.contributor.author | Nuguer, Victoria |
| dc.contributor.author | Roldán-Peña, Jessica |
| dc.contributor.orgunit | Department of Research and Chief Economist |
| dc.date.available | 2020-10-08T00:00:00 |
| dc.date.issue | 2020-10-08T00:00:00 |
| dc.description.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. |
| dc.format.extent | 4 |
| dc.identifier.doi | http://dx.doi.org/10.18235/0002728 |
| dc.identifier.url | https://publications.iadb.org/publications/english/document/Research-Insights-Should-Financial-Stability-Considerations-Be-Included-in-Monetary-Policy-Rules-or-Should-They-Be-Addressed-with-Separate-Financial-Policy-Rules.pdf |
| dc.identifier.url | https://publications.iadb.org/publications/spanish/document/Perspectivas-de-investigacion-Deberian-incluirse-las-consideraciones-de-estabilidad-financiera-en-las-reglas-de-politica-monetaria-o-deberian-abordarse-con-reglas-distintas-de-politica-financiera.pdf |
| dc.language.iso | en |
| dc.publisher | Inter-American Development Bank |
| dc.subject | Inflation |
| dc.subject | Monetary Policy |
| dc.subject | Financial Policy |
| dc.subject | Financial Friction |
| dc.subject | Financial Market |
| dc.subject | Interest Rate |
| dc.subject | Financial Regulation |
| dc.subject | Financial Stability |
| dc.subject.jelcode | E52 - Monetary Policy |
| dc.subject.jelcode | E58 - Central Banks and Their Policies |
| dc.subject.jelcode | E44 - Financial Markets and the Macroeconomy |
| dc.type | Catalogs and Brochures |
| idb.identifier.pubnumber | IDB-CB-00423 |
| idb.operation | BK-C1102 |