Macroprudential policy – effects on the economy and the interaction with monetary policy
Date
21/09/2015
Gabriela Guibourg, Magnus Jonsson, Björn Lagerwall and Christian Nilsson analyse the possible consequences of various macroprudential policy measures. Based on economic theory, capital requirements, leverage ratio requirements, loan-to-value limits, debt-toincome limits and debt-service-to-income ratio limits are discussed.
The authors provide an overview of the rapidly growing scientific literature and highlight the economic effects of macroprudential policy measures. They also analyse how monetary policy can be affected. New macroprudential policy instruments can deal with financial imbalances more efficiently, which would ease the situation for monetary policy, but they can also affect inflation and resource utilisation in a way that monetary policy may need to consider.
The article is included in this year's second issue of the Sveriges Riksbank Economic Review , which was published 17 September 2015.
Gabriela Guibourg, Magnus Jonsson, Björn Lagerwall and Christian Nilsson
The authors work in the Monetary Policy Department of the Riksbank.
