Martin, Alberto Mendicino, Caterina Van der Ghote, Alejandro
Year of Publication:
ECB Working Paper No. 2527
The Global Financial Crisis fostered the design and adoption of macroprudential policies throughout the world. This raises important questions for monetary policy. What, if any, is the relationship between monetary and macroprudential policies? In particular, how does the effectiveness of macroprudential policies (or lack thereof) influence the conduct of monetary policy? This discussion paper builds on the insights of recent theoretical and empirical research to address these questions.
Financial Frictions Capital Requirements Systemic Risk