Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/82458
Authors: 
Bergman, U. Michael
Hansen, Jan
Year of Publication: 
2002
Series/Report no.: 
Sveriges Riksbank Working Paper Series 137
Abstract: 
This paper examines the relationship between financial instability and monetary policy within the Swedish economy. Based on a standard VAR model of monetary policy extended to include measures of financial instability and credit expansions, we examine the interaction between monetary policy and financial stability. We find that both higher interest rates, higher prices and lending expansions contribute to financial instability. As the effects from price shocks are strong and persistent compared to other shocks, our conclusion is that we cannot reject that price stability and financial stability are mutually consistent goals for monetary policy.
Subjects: 
Financial instability
monetary policy
VAR model
structural shocks
JEL: 
C12
C22
Document Type: 
Working Paper

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