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IBRN Initiative on Interactions of Monetary and Prudential Policies

Author

Listed:
  • Konstantin Styrin

    (Bank of Russia)

  • Yulia Ushakova

    (Bank of Russia)

Abstract

This paper surveys a recent IBRN initiative that studied the interactions of monetary and macroprudential policies. The general research questions is: To what extent does macroprudential policy reshape the transmission of monetary policy? The concrete context differs across studies. There are three main findings. First, domestic prudential policy in recipient economies can partially offset inward transmission from systemic economies to domestic lending, with the size of the effect being heterogeneous across banks in source countries. Second, the stance of prudential policy in the source economy also matters and can affect the intensity of outward monetary transmission. Finally, there is much heterogeneity in the strength of effect across different prudential instruments.

Suggested Citation

  • Konstantin Styrin & Yulia Ushakova, 2020. "IBRN Initiative on Interactions of Monetary and Prudential Policies," Russian Journal of Money and Finance, Bank of Russia, vol. 79(3), pages 58-74, September.
    • Handle: RePEc:bkr:journl:v:79:y:2020:i:3:p:58-74
    DOI: 10.31477/rjmf.202003.58
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    References listed on IDEAS

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    Cited by:

    1. Pavel E. Zhukov, 2023. "Capital Flight from Russia and Possible Sources of Financing Budget Expenditures," Finansovyj žhurnal — Financial Journal, Financial Research Institute, Moscow 125375, Russia, issue 6, pages 27-42, December.

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    More about this item

    Keywords

    monetary policy; prudential policy; policy interaction; cross-border policy spillovers; bank lending;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies

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