Original Article
Financial stability and interest-rate policy: A quantitative assessment of costs and benefit
Stefan Laséen,
Andrea Pescatori,
Corresponding Author
Stefan Laséen
Sveriges Riksbank
Corresponding author: Stefan Laséen, stefan.laseen@riksbank.seSearch for more papers by this authorStefan Laséen,
Andrea Pescatori,
Corresponding Author
Stefan Laséen
Sveriges Riksbank
Corresponding author: Stefan Laséen, stefan.laseen@riksbank.seSearch for more papers by this authorAbstract
Should monetary policy use its short-term policy rate to stabilize the growth in household credit and housing prices with the aim of promoting financial stability? We ask this question for the case of Canada. We find that, to a first approximation, the answer is no.
Résumé.
Stabilité financière et politique de taux d’intérêt: évaluation quantitative des coûts et des avantages. Afin de favoriser la stabilité financière, la politique monétaire devrait-elle utiliser son taux directeur à court terme pour équilibrer la croissance de l’endettement des ménages et du prix des logements ? Nous posons cette question pour le Canada. Dans une première approximation, notre réponse est négative.
Supporting Information
| Filename | Description |
|---|---|
| caje12458-sup-0001-LAW-OnlineAppendix.pdfPDF document, 478 KB |
Supplementary material accompanies the online version of this article. The data and code that support the findings of this study are available in the Canadian Journal of Economics Dataverse at https://doi.org/10.5683/SP3/APB67M. |
| caje12458-sup-0002-Data.zipZip archive, 10.2 MB | |
| caje12458-sup-0003-README.pdfPDF document, 108.3 KB | |
| caje12458-sup-0004-FigureA1.pngPNG image, 168.3 KB | |
| caje12458-sup-0005-FigureA2.pngPNG image, 78.2 KB | |
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| caje12458-sup-0007-FigureA4.pngPNG image, 128.4 KB | |
| caje12458-sup-0008-FigureA5.pngPNG image, 105.8 KB | |
| caje12458-sup-0009-FigureA6.pngPNG image, 13.6 KB | |
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