Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/212867 
Year of Publication: 
2017
Series/Report no.: 
BOFIT Discussion Papers No. 4/2017
Publisher: 
Bank of Finland, Institute for Economies in Transition (BOFIT), Helsinki
Abstract: 
We examine the effects of monetary and macroprudential policies in the Asia-Pacific region, where many inflation targeting economies have adopted macroprudential policies in order to safeguard financial stability. Using structural panel vector autoregressions that identify both monetary and macro-prudential policy actions, we show that tighter macroprudential policies used to contain credit growth have also had a significant negative impact on macroeconomic aggregates such as real GDP and the price level. The similar effects of monetary and macroprudential policies may suggest a complementary use of the two policies at normal times. However, they could also create challenges for policy-makers, especially during times when low inflation coincides with buoyant credit growth.
JEL: 
E58
E61
Persistent Identifier of the first edition: 
ISBN: 
978-952-323-155-9
Document Type: 
Working Paper

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