On the Effectiveness of ‘Leaning Against the Wind’ and Macroprudential Policy
Mercredi | 2014-11-26 salle B103, 12h-14h Armand FOUEJIEU AZANGUE – Alexandra POPESCU The leaning against the wind strategy in which the central bank responds to financial imbalances when setting its policy interest rate has been advocated in the aftermath of the recent financial crisis. While such a strategy can generate trade-offs between policy objectives, macroprudential frameworks are discussed in current debates as the most appropriated approaches to cope with financial instability. In response to financial risks, this paper investigates the […]