Stabilization and the policy mix in a monetary union
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Malmierca, M.: Stabilization and the policy mix in a monetary union, The Quarterly Review of Economics and Finance, Volume 83, 2022, Pages 92-118. https://doi.org/10.1016/j.qref.2021.11.004
The need for macroprudential policy to “lean against the wind” of credit cycles at the aim of financial and macroeconomic stability has become a common belief. There is also an increasing interest among policymakers and academics in the interaction between this novel tool and other traditional measures of the policy mix. This paper builds a two-country DSGE model for a monetary union and analyzes, through different macroprudential–fiscal scenarios, the response of the main economic variables to ...