Optimal Macroprudential and Fiscal Policy in a Monetary Union
Author
Malmierca Ordoqui, MaríaDate
2020Citation
Malmierca, María, Optimal Macroprudential and Fiscal Policy in a Monetary Union (November 17, 2020). Available at SSRN: https://ssrn.com/abstract=3732388 or http://dx.doi.org/10.2139/ssrn.3732388
Abstract
The growing concern about the financial system stability has turned macroprudential policy into a key instrument of the policy mix. Through a two-country model for a monetary union, I evaluate the optimal combinations of macroprudential and fiscal policy, both in terms of welfare maximization and loss function minimization (stability). I find that the advisability to coordinate macroprudential and fiscal policy depends on the kind of shock that drives the business cycle fluctuations. In the even ...
Áreas Temáticas
Departamentos
Document type
preprint