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Exploring the trade-off between leaning against credit and stabilizing economic activity

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  • Benati, Luca

Abstract

Evidence from monetary VARs points towards an unfavorable trade-off between leaning against credit fluctuations and stabilizing real economic activity. Results are robust both across countries, and based on two alternative approaches.

Suggested Citation

  • Benati, Luca, 2023. "Exploring the trade-off between leaning against credit and stabilizing economic activity," Economics Letters, Elsevier, vol. 223(C).
    • Handle: RePEc:eee:ecolet:v:223:y:2023:i:c:s0165176523000198
    DOI: 10.1016/j.econlet.2023.110994
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    References listed on IDEAS

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    6. Arias, Jonas E. & Caldara, Dario & Rubio-Ramírez, Juan F., 2019. "The systematic component of monetary policy in SVARs: An agnostic identification procedure," Journal of Monetary Economics, Elsevier, vol. 101(C), pages 1-13.
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    More about this item

    Keywords

    Credit; Structural VARs; Sign restrictions; Zero restrictions; Lucas critique;
    All these keywords.

    JEL classification:

    • E2 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment
    • E3 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles

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